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The study sought to investigate the effect of foreign aid and capital flow on real economic growth for the SADC region. Eleven member states of the SADC region are selected for analysis based on data availability. In the study, foreign aid is represented by official development assistance (ODA), external debt (EXTD), and debt service cost (DSC) while the inflow of foreign direct investment represents capital flow (FDI). Annual percentage growth of per capita Gross Domestic Product (GDPpc) is used as a proxy of real economic growth. Trade balance (TRO) is included in the model regression as a control variable. The study employed panel econometric models. The results of panel ARDL indicate that ODA and FDI were found to have a negligible effect on real growth in the short run but contribute positively and significantly in the long run. This revelation supports the view that ODA and FDI are essential determinants of growth. On the other hand, EXTD together with its associated costs was found to have a detrimental effect both in the short run and long run. Based on the results of the study, the authors put forward the following policy recommendations for the SADC region: most importantly, there ought to be effective management of external debt by SADC countries to reduce their overdependency on external debt for their domestic needs. Given the positive effect of FDI in the region, the SADC region needs to intensify its efforts in devising measures that will attract foreign investors to the region which among others include pursuing inclusive and sustainable economic growth. Lastly, there is a need for effective management and official development aid to ensure sustainable growth. [ABSTRACT FROM AUTHOR]

As the least developed country with an extreme lack of financial resources, borrowing is an inevitable way for Lao People's Democratic Republic (Lao PDR or Laos) to develop its economy. However, in recent years, due to a deteriorating external environment, Laos' economic activity has been weighed down and has faced considerable external debt servicing risks. This article analyses the development and evolution characteristics of Laos' external debt since the reform and opening up. [ABSTRACT FROM AUTHOR]

This paper proposes that an International Monetary Fund (IMF) policy shift was the reason behind major changes in sovereign debt negotiation outcomes observed in 1989. The new policy, in marked departure from past policy, allowed the IMF to lend to nations in default. The paper highlights the stark improvements in debt forgiveness and post-negotiation debt servicing ability coincident with the IMF policy shift. A theoretical framework is proposed in which the IMF policy shift causes the observed changes in negotiation outcomes. The model highlights the policy's potential to improve a country's outside option during negotiations of defaulted debt. In the model, this improvement leads to increased debt forgiveness which in turn leads to less post-negotiation debt servicing difficulties. The model is then used to address an important question regarding the nature of post-negotiation default risk. The case is made that countries face persistent, rather than temporary, default risk after such negotiations. To avert such risk, they moderate their borrowing. [ABSTRACT FROM AUTHOR]

The paper provides a comprehensive comparison of the experiences of debt accumulation and of the debt crises which took place within less than a decade during the second half of the nineteenth century in Tunisia, Egypt and the Ottoman Empire. The comparison covers the period from the 1850s to the 1880s, as the three countries were attempting to modernize and meet the challenges posed by the industrial revolution and the European expansion globally. They quickly faced financial constraints, increased their external borrowing and ran into crisis. These crises, which were triggered from 1867 to 1876, were part of the second wave of crises during the nineteenth century. The countries differed considerably in the way the crises were managed and resolved. In this context, based on available information, the paper provides a quantitative assessment of the debt burden and the various indicators of creditworthiness using constructed series on total GDP for the three countries for the period 1860–1884. This allows for a comparison of the full processes of debt accumulation, the triggering of the crises and their resolution. In doing so it brings together a wealth of data and information about the factors which impacted creditworthiness and capacity to service debt, relating to trade and fiscal revenues, which played a major role in determining the severity of the crises and the way they were resolved. [ABSTRACT FROM AUTHOR]

This study investigated the impact of Pakistan's government revenue and expenditure instabilities on its budget deficit from 1972 to 2018. Following Morrison (World Dev 10(6):467–473, 1982), the conditional variance is estimated using the GARCH model to proxy these instabilities. The GMM estimates revealed that the instabilities of government revenues and expenditures caused an increase in the budget deficit. Moreover, the factors like lack of government control over public expenditure, debt servicing, government participation in the economy, and inflation rate also contribute to a rise in the budget deficit. However, government revenues and GDP growth rate reduce the budget deficit simultaneously. [ABSTRACT FROM AUTHOR]

This paper analyses the available data on external debt burdens of low- and middle-income countries and identifies 79 countries that are considered by international institutions as being in or at risk of debt distress. In the context of the ongoing climate crisis, high debt burdens hamper the ability of these country to invest in climate resilience. This paper shows the effects that servicing debt has on these countries' ability to respond to climate disasters, as well as provide services to their population. The paper shows how developing countries are trapped in a vicious cycle, which keeps them indebted and perpetuates vulnerability to the effects of climate change, as well as hampering their development path. The response so far from the international financial community has been inadequate to help countries break this vicious cycle. [ABSTRACT FROM AUTHOR]

Exchange rate (EXR) stability is crucial for especially the developing economies. This study examines the macroeconomic variables which affect EXR in member countries of South Asian Association for Regional Cooperation (SAARC). To do the analyses, data from 1981 to 2019 was relied upon. To estimate the long-run coefficients, Fully Modified Ordinary Least Square (FMOLS) is incorporated. The outcomes of FMOLS exhibit that the variables such as trade, inflation, GDP, total debt services, trade openness, and tariff rate are inversely related to EXR while broad money is found to affect the EXR in positive. As a policy prospect, The Central Bank (CB) is needed to follow tight monetary policy to curtail liquidity of money in economy. It is recommended that CB to discourage government project financing that is to cause increase in money supply but to initiate trendline to facilitate GDP growth, trade, and imposition of tariff to curtail rising EXR. [ABSTRACT FROM AUTHOR]

By preemptive austerity, we mean a policy that increases taxes to deter potential rollover crises. The policy is so successful that the usual danger signal of a rollover crisis, a high yield on new bonds sold, does not show up because the policy eliminates the danger. Mechanically, high taxes make the safe zone in the model - the set of sovereign debt levels for which the government prefers to repay its debt rather than default - larger. By announcing a high tax rate at the beginning of the period, the government ensures that tax revenue will be high enough to service sovereign debt becoming due, which deters panics by international lenders but is ex-post suboptimal. That is why, as it engages in preemptive austerity, the government continues to reduce the level of debt to a point where, asymptotically, high taxes are no longer necessary. [ABSTRACT FROM AUTHOR]

The academic literature and the popular press emphasize high levels of household debt as a threat to financial stability. Using Canadian data, we show that the household debt service ratio is a better predictor of financial distress than measures focused on debt ratios. We construct a new financial vulnerability barometer for the Canadian economy in which the debt service ratio improves its ability to predict periods of financial vulnerability. We also show that new borrowing, while increasing economic growth in the short run, leads to an increase in debt servicing which contributes to slumps in activity and to financial instability. Finally, we show that the debt service ratio also has significant out-of-sample predictive power for growth and financial crises. [ABSTRACT FROM AUTHOR]

The aim of this study is to examine the long-term relationship between external debt service payments, external debt stock and exchange rate on the gross domestic product by using the annual data of 1994-2020 in Türkiye, with Johansen cointegration analysis. In the study, firstly, the stationarity levels of the variables were tested with PP and ADF unit root tests, and then FMOLS, DOLS and CCR coefficient estimators were used depending on the long-term relationship determination. Findings from DOLS, FMOLS and CCR coefficient estimators show that external debt stock and exchange rate have a negative or decreasing relationship with GDP and a positive or increasing relationship with external debt service payment. In this direction, it has been determined that while the foreign debt service payment has a positive effect on the Turkish economy, the increase in the external debt stock and exchange rate has a negative effect on the same economy. [ABSTRACT FROM AUTHOR]

This paper analyses the relationship between household debt and income inequality in South Africa for the period 1980–2021. We use two measures of inequality and estimate a vector error correction model (VECM) which includes household debt, inequality, and other macroeconomic variables. To test the robustness of our results, single equation models are used, which estimate household debt as a function of inequality and macroeconomic factors. We employ two measures of inequality, namely Gini coefficient and ratio of top and bottom income earners' proportion of income. Furthermore, we use both household debt as a percentage of disposable income and household debt service costs as dependent variables in single equation regressions. The study finds a negative and significant relationship between household debt and income inequality in the long run, which contradicts the Rajan hypothesis in the South African case. Rather, we find that inequality in South Africa creates a bias in debt allocation towards high-income earners, whose incomes can easily absorb the extra debt (reduced ratio of debt to disposable income). There are therefore no socio-equity considerations in South African credit markets. We find growth in gross domestic product (GDP) per capita also has a moderating effect on the relationship between household debt and income inequality. High GDP per capita growth in the presence of high inequality reduces the impact of inequality on household debt and vice-versa. All other control variables take expected signs. These results are robust to changes in the inequality or household debt measures. [ABSTRACT FROM AUTHOR]

Purpose: This paper examines the impact of fiscal constraints on education expenditure in Nigeria from 1981 to 2021, using annual time series data. Design/methodology/approach: The study deployed cointegration techniques with structural breaks. Findings: Cointegration was found between education expenditure, debt servicing (a proxy for fiscal constraint) and associated variables. In both the long and short run, debt servicing negatively and significantly impacts education expenditure. While government revenue has a positive and significant impact on education expenditure in the long and short run, political institution has a negative and significant impact in the long run. Political institution is thus critical to education financing in Nigeria. The impact of debt is positive and significant in the short run, but not significant in the long run. There is a unidirectional causality from debt servicing to education expenditure. Practical implications: Political institutions are critical towards contracting only productive debts and checkmating the adverse political environment through political will that prioritizes education financing. Originality/value: The study extends the empirical literature on the fiscal constraint-education expenditure first by investigating fiscal constraint-education expenditure nexus given the institutional environment, and second by extending the methodology using cointegration techniques in the midst of structural breaks. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2022-0682. [ABSTRACT FROM AUTHOR]

The study is devoted to the challenges for the fiscal policies of Central and Eastern European (CEE) countries, resulting from the strong growth of public debt and its servicing costs under the conditions of the pandemic and war shocks. The purpose of the study is to answer the questions: i) what factors caused the sharp increase in sovereign debt yields? ii) is there a correlation between the degree of implementation of sound economic governance (SEG) principles and the cost of servicing sovereign debt? ii) how strong was the response of the sovereign deficit and debt to the shocks caused by the pandemic and war in Ukraine? iii) does the rising cost of servicing debt threaten the sustainability of public finances? v) do the adopted SEG principles remain relevant during periods of shocks? The study covered the 6 largest economies in this part of Europe, i.e. Poland, Romania, the Czech Republic, Greece, Hungary, and Slovakia, but its results apply indirectly to many other countries. The results were confronted with a plan for reforming the EU's economic governance system in order to identify the fundamental challenges facing the countries studied in this context. On the basis of the study, recommendations were put forward for shaping the assumptions of the state debt management strategy and multi-year financial plans. [ABSTRACT FROM AUTHOR]

Background: Advancing healthcare access and quality for underserved populations requires a diverse, culturally competent interprofessional workforce. However, high educational debt may influence career choice of healthcare professionals. In the United States, health professions lack insight into the maximum educational debt that can be supported by current entry-level salaries. The purpose of this interprofessional economic analysis was to examine whether average educational debt for US healthcare graduates is supportable by entry-level salaries. Additionally, the study explored whether trainees from minoritized backgrounds graduate with more educational debt than their peers in physical therapy. Methods: The study modeled maximum educational debt service ratios for 12 healthcare professions and 6 physician specialties, incorporating profession-specific estimates of entry-level salary, salary growth, national average debt, and 4 loan repayment scenarios offered by the US Department of Education Office of Student Financial Aid. Net present value (NPV) provided an estimate for lifetime "economic power" for the modeled careers. The study used a unique data source available from a single profession (physical therapy, N = 4,954) to examine whether educational debt thresholds based on the repayment model varied between minoritized groups and non-minoritized peers. Results: High salary physician specialties (e.g. obstetrics/gynecology, surgery) and professions without graduate debt (e.g. registered nurse) met debt ratio targets under any repayment plan. Professions with strong salary growth and moderate debt (e.g. physician assistant) required extended repayment plans but had high career NPV. Careers with low salary growth and high debt relative to salary (e.g. physical therapy) had career NPV at the lowest range of modeled professions. 29% of physical therapy students graduated with more debt than could be supported by entry-level salaries. Physical therapy students from minoritized groups graduated with 10–30% more debt than their non-minoritized peers. Conclusions: Graduates from most healthcare professions required extended repayment plans (higher interest) to meet debt ratio benchmarks. For several healthcare professions, low debt relative to salary protected career NPV. Students from minoritized groups incurred higher debt than their peers in physical therapy. [ABSTRACT FROM AUTHOR]

The article was to apply the LightGBM algorithm to provide early warning on financial situation of listed feed companies, combining LightGBM algorithm with Z-score model. The financial data of 14 A-share listed feed companies from 2012 to 2021 were selected to calculate the Z-values, and the obtained Z-values were used as input to LightGBM algorithm to obtain final optimised Z-values. The results showed that the overall financial position of listed feed companies was good and the level of risk was low, with debt servicing capacity having the greatest impact on the company's financial position, with the proportion of importance of this characteristic being 27.90%. The LightGBM algorithm optimised Z-score model had an R² of 0.915 and 0.903 for training and test sets respectively in terms of accuracy, and the lowest root mean square error (RMSE) of 0.787 and 0.700 errors respectively were smaller. The paper indicates that the optimised Z-score model has good stability and application prospects in financial early warning of listed feed companies, and can provide some reference value for listed feed company managers and investors to prevent corporate financial risks. [ABSTRACT FROM AUTHOR]

This article is a special issue of the International Journal of Political Economy that honors the memory of Luigi L. Pasinetti. The issue focuses on Pasinetti's critique of European rules, particularly the reform of the Stability and Growth Pact (SGP). The contributions in the issue analyze the proposed revision of the governance framework and its implications for public debt. The articles also explore topics such as fiscal policy responses to COVID-19, the relationship between debt sustainability and human development expenditures in Low Income Countries, and the possibility of achieving Debt/GDP reductions through increased public spending. The issue aims to provide valuable insights on economic policy and stimulate further research in these areas. [Extracted from the article]

AbstractIn recent times, Africa has experienced remarkable economic growth; nonetheless, this advancement remains far from being considered inclusive, given the persistently high levels of poverty and income inequality across the continent. To this end, this study investigates the role of fiscal policy measures on inclusive growth using absolute and relative pro-poor measures of growth. The study utilizes panel data from 48 African countries spanning the period 1996 to 2020 and employs the Panel System Generalized Method of Moments (GMM) technique for analysis. Estimation results reveal a concerning trend where public debt service exacerbates both poverty and income inequality, underscoring the adverse consequences of mounting public debt pressures in the region. Interestingly, while government expenditure reduces inequality and worsens poverty, an increase in taxation reduces poverty but worsens income inequality. Further, an increase in taxation negatively affects the income shares of the bottom and middle-income groups while the top-income groups benefit. The findings of this study have significant policy implications for improving inclusive growth in the continent.

This study uses a combination of archival and documentary research, as well as quantitative analysis, to uncover the evolution and impact of banking regulations on the economy of Brunei Darussalam. Available evidence suggests that throughout most of the 20th century, regulators adopted a laissez-faire approach with minimal regulations in the banking industry. However, financial crises tend to trigger regulatory reforms. Growing household indebtedness and bankruptcies were precursors to the introduction of major institutional changes, including the establishment of a centralized monetary and financial regulatory authority, Autoriti Monetari Brunei Darussalam in 2011 (later renamed the Brunei Darussalam Central Bank (BDCB) in 2021), the Brunei Darussalam Protection Corporation in 2011, as well the Credit Bureau in 2012. Various financial regulations covering personal credit/financing, interest rates, credit card usage, and the Total Debt Service Ratio (TDSR) requirements have been introduced to promote financial stability and consumer financial protection. This has coincided with an evident decline in private and household indebtedness as well as non-performing loans/financing among banks. However, promoting financial stability and supporting economic growth can be a tricky balancing act for regulators to navigate. This study finds that the lack of local investment opportunities limits the possibility for surplus funds to circulate in the economy. In terms of policy recommendations, the role of financial regulations is discussed in the context of addressing global challenges such as inequality and climate change. [ABSTRACT FROM AUTHOR]

In recent times, Africa has experienced remarkable economic growth; nonetheless, this advancement remains far from being considered inclusive, given the persistently high levels of poverty and income inequality across the continent. To this end, this study investigates the role of fiscal policy measures on inclusive growth using absolute and relative pro-poor measures of growth. The study utilizes panel data from 48 African countries spanning the period 1996 to 2020 and employs the Panel System Generalized Method of Moments (GMM) technique for analysis. Estimation results reveal a concerning trend where public debt service exacerbates both poverty and income inequality, underscoring the adverse consequences of mounting public debt pressures in the region. Interestingly, while government expenditure reduces inequality and worsens poverty, an increase in taxation reduces poverty but worsens income inequality. Further, an increase in taxation negatively affects the income shares of the bottom and middle-income groups while the top-income groups benefit. The findings of this study have significant policy implications for improving inclusive growth in the continent. [ABSTRACT FROM AUTHOR]

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We derive a firm's debt issuance policy when managers have an informational advantage over creditors and face debt restructuring costs. In our model, regardless of how poor their private signal is, managers of firms that can access the credit market avoid default by issuing new debt to service existing debt. Therefore, only bonds of firms that have exhausted their ability to borrow are subject to jump-to-default risk because of incomplete information and, in turn, command a jump-to-default risk premium. We document that our model captures many salient features of the corporate bond market. This paper was accepted by Kay Giesecke, finance. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2022.4529. [ABSTRACT FROM AUTHOR]

The paper investigates the triggers of arrears on debt in a full recourse euro area country. An extensive individual‐level quarterly panel dataset enables quarterly arrears on debt to be tracked while controlling for individual specific heterogeneity. The estimations show that lower income and higher debt service ratios are associated with a higher probability of arrears, confirming the "ability to pay" hypothesis. The results reveal different debt repayment behaviour for housing and consumer loans over a business cycle. Newly taken housing loans exhibit a lower probability of arrears and the same applies to loans granted during the period of easy credit conditions and high real estate prices, indicating that housing credit boom has not contributed to the rise in arrears on debt. Newly taken consumer loans are related to a higher probability of arrears, suggesting that consumer loans have been used to alleviate financial difficulties. [ABSTRACT FROM AUTHOR]

The research aims to demonstrate the Islamic investment formulas in managing public debt in the Kingdom of Saudi Arabia and their importance through the issuance of Islamic instruments in the forms of Salam and Istisna'a as models for these tools. The research concluded with results, the most important of which are: The government’s strategy for managing public debt proved that it resorted to public debt in order to bridge the budget deficit, and one of the most prominent results is also the positive impact of issuing sukuk on the decrease in the debt service rate (interests), and the research recommended a number of recommendations, including: Expanding the circle of employment formulas Contracts of Islamic transactions in the issuance of sukuk, and the necessity of providing a financial institutional structure that supports the sukuk issuance project. [ABSTRACT FROM AUTHOR]

The objective of this article is to delve into the development of the region's financial fragility and economic instability process in an environment where, in the absence of the United States, other agents such as Turkey, the United Arab Emirates, Saudi Arabia, Russia, and the growing presence of China, have emerged. An inflationary environment, high indebtedness, and rising interest rates in the short term are placing countries of the region to the limit due to the lack of a full employment policy given the burden of servicing external debt and the need to import food, fertilizers, and fuel. This situation prioritizes institutional investors who play a determining role in the economic development of the African region. [ABSTRACT FROM AUTHOR]

This Research Note provides an empirical contribution to the discussion on the debt implications vis-à-vis the unfolding of the Belt and Road Initiative (BRI). For this purpose, we analyze the impact of external debt and other relevant factors on the economies of the China-Central Asia-West Asia Economic Corridor using panel data over the period 1996–2018. The reasons we focus on this geographic area are threefold: first, these countries form a key part of the BRI with historical connections to the Silk Road; second, it provides a unique combination of economies in transition such as the former Soviet Union countries and larger economies such as Iran and Turkey; and last but not least, this corridor has received relatively less attention in the related literature. Among the main findings is that debt service on external debt has a positive effect on GNI per capita, both with and without China in the empirical analysis. As another key component of this major development strategy, infrastructure is also found to have a positive impact. The results thus foreshadow growing opportunities as the BRI unfolds, albeit with foreseen issues related to debt sustainability, ecological and wellbeing considerations. [ABSTRACT FROM AUTHOR]

The deleterious effect of debt restructuring on banks' balance sheets and, consequently, on the economy as a whole has been a key policy issue. This paper studies how post-default fiscal policy interacts with this sovereign-bank loop and shape the response of a model economy. Calibration of the model matches characteristics of the Greek economy at the time of the bond exchange. Debt restructuring in place of higher lump-sum taxation or lower nonproductive government spending harms the economy even if no other cost of default is considered. However, the sovereign-debt loop is less costly to the economy than increases in labor or capital taxes to service debt. Even so, if fiscal policy is too responsive, a crowding-out effect inhibits the recovery of capital markets, hence a more conservative fiscal stance is desirable. Thus, how diabolic the post-default sovereign-bank loop is depends to a large extent on the way fiscal policy responds. [ABSTRACT FROM AUTHOR]

Whilst both the level and the make-up of public debt are high salience issues, the management of public debt seldom commands public attention. This study examines the quiet politics of public debt management in advanced capitalist societies, comparing debt management reforms and the everyday practice of debt management in Germany and the UK. We present evidence of two factors contributing to the political quietude around public debt management: a persistent absence of partisan contestation and conflict; and the dominance of 'market discipline' as an interpretative frame, which prevents changes in interest rates and debt servicing costs to be seen as the product of faulty debt management. We also find that this quietude creates a space for the coordination and cooperation between contemporary capitalist states and large dealer banks, whose capacities effectively to act within their respective domains depend on each other. [ABSTRACT FROM AUTHOR]

Sovereign default has myriad economic and political consequences. Existing research, however, has not explored the human costs of sovereign default, though some link the fiscal flexibility afforded by sovereign creditworthiness to improved human rights performance. But what are the consequences when sovereigns lose all creditworthiness and default on their debt obligations? I argue that while the average effect of default is negative for respect for physical integrity rights, a conditional effect exists. When states devote more of their resources to debt service and default, they are likely to see a short term increase in respect for physical integrity rights. I find robust support for these arguments using panel data on over 90 developing countries from 1981–2010. [ABSTRACT FROM AUTHOR]

The threshold of external debt service toward economic growth is a continuously debatable topic among researchers globally. The issue is widely debated, particularly in highly indebted developing countries such as Nigeria. This paper investigates the impact of external debt service on the economic growth of Nigeria from 1985 to 2021. Using the Ordinary Least Squares (OLS) estimation technique, the result indicates that debt service hampers the growth of the Nigerian economy. This implies that the external debt service burden drains the country's income, which should have been channeled to increase future production. The finding also shows that the stock of external debt promotes economic growth. It is hereby recommended that proper management of the external debt stocks by governments in more productive sectors could bring further growth. [ABSTRACT FROM AUTHOR]

Keywords: Third-party deductions; decision-maker guidance; mandatory reconsiderations; social welfare EN Third-party deductions decision-maker guidance mandatory reconsiderations social welfare 96 99 4 05/25/23 20230301 NES 230301 The largest creditor to those accessing food banks in the UK is not a private company or a bank, but the Department for Work & Pensions (DWP) (Trussell Trust [7]). First, that the principles in I R(A) i bite in the social security context - where decision-maker guidance falls short of common law obligations, the court will intervene. Timson was successful on one ground: the DWP's written guidance to decision-makers was unlawful because, read as a whole, it did not make clear that claimants should be offered the opportunity to make representations to the decision-maker before a TPD was imposed (para. [Extracted from the article]

In a default event, several obligors simultaneously experience financial difficulty in servicing their debt to the point where the entire market can experience a sudden yet significant jump to a credit default. To help protect lenders against a jump-to-default event, regulators require banks to hold capital equivalent to the default risk charge as a buffer against the losses they may incur. The Basel regulatory committee has articulated and set default risk modelling guidelines to improve comparability amongst banks and enable a consistent bank-wide default risk charge estimation. Emerging markets are unique because they usually have illiquid markets and sparse data. Thus, implementing an emerging market default risk model and, at the same time, complying with the regulatory guidelines can be non-trivial. This research presents a framework for modelling the default risk charge in emerging markets in line with the regulatory requirements. The default correlation model inputs are derived and empirically calibrated using emerging market data. The paper ends with some considerations that regulators, supervisors, and banks can use to get financial institutions to adopt an emerging markets default risk charge model. [ABSTRACT FROM AUTHOR]

As saliency of the tax burden increases, the preference for a lower burden increases, but most counties are restricted by the state from adopting new taxes or changing the existing rates. Some states allow counties to adopt a charter, freeing them from state control. Using a panel of Florida counties from 1980 to 2017, we explore whether citizens act to reduce their property tax once a charter is passed. Citizens act against their preferences not by lowering burden but rather by increasing it in the case of debt service, suggesting citizens are maximizing their optimal tax burden in exchange for services. Applications For Practice: The passage of a charter impacts the county's fiscal policy space.Citizens did not lower their total millage and operating millage rates after the passage of a charter.The presence of a charter was tied to increases in the tax burden of debt service.Citizens are not choosing to maximize their income by reducing their burden, but rather they are adjusting or expanding the public services provided by a county government. [ABSTRACT FROM AUTHOR]

Purpose: The aim of this briefing is to look at the often overlooked impact of gearing (or leverage) on risk. The positive impact on equity return in a strong market is gained by increasing the overall risk of the investment and potentially negative impacts on returns in weak markets. Design/methodology/approach: This Education Briefing is an explanation of how the addition of individual assets to a portfolio can, with gearing, impact upon the portfolio risk/return profile. Findings: Through a simple example, this briefing shows how geared portfolios can struggle in poor markets when the servicing of the debt (at increased interest rates) can have a severe negative impact upon returns. Practical implications: The process of borrowing at a bank rate below the return rate on an investment project can increase the equity return of the project as long as all incomes and interest rate remain at appropriate levels but when incomes fall or disappear and/or interest rates rise, the implication for the assets return and/or solvency can be highly significant. Originality/value: This is a review of existing models. [ABSTRACT FROM AUTHOR]

Global debt has grown to record levels. Government debt, corporate debt and household debt around the world rose to a high of 350% of world gross domestic product in 2022. The systemic risk that has built up during the extended period of low interest rates threatens to materialize now as rates rise worldwide. For countries in which external liabilities are high, debt service costs will increase, and refinancing may become prohibitively expensive. External liabilities and their term structures provide insight into which emerging and developing countries may be most vulnerable in the next months. [ABSTRACT FROM AUTHOR]