Journal article
Gonca Senel, Mark L. J. Wright
Economics Letters, vol. 209, 2021
Economics Letters, vol. 209, 2021
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APA
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Senel, G., & Wright, M. L. J. (2021). With age comes immaturity: Do countries with older populations issue shorter maturity debt? Economics Letters, 209. https://doi.org/10.1016/j.econlet.2021.110100
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Senel, Gonca, and Mark L. J. Wright. “With Age Comes Immaturity: Do Countries with Older Populations Issue Shorter Maturity Debt?” Economics Letters 209 (2021).
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Senel, Gonca, and Mark L. J. Wright. “With Age Comes Immaturity: Do Countries with Older Populations Issue Shorter Maturity Debt?” Economics Letters, vol. 209, 2021, doi:10.1016/j.econlet.2021.110100.
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@article{gonca2021a,
title = {With age comes immaturity: Do countries with older populations issue shorter maturity debt?},
year = {2021},
journal = {Economics Letters},
volume = {209},
doi = {10.1016/j.econlet.2021.110100},
author = {Senel, Gonca and Wright, Mark L. J.}
}
Abstract
Recent work has found that countries with older populations face steeper yield curves and issue shorter maturity debt than do younger countries. We reexamine these findings using a new database of public debt maturity and yields for OECD countries. We first show that the behavior of eurozone countries in the pre-euro period drives these results. Next, including more recent data from the post-euro period, we show that the relationship between population age, maturity, and yield curve slopes disappears. This finding is robust to excluding high-credit-risk countries. Last, we show that these patterns reemerge after the European debt crisis, suggesting that eurozone capital markets have resegmented.
JEL classification: E43; G11; H63
Keywords: Public debt; Debt maturity; Aging; Sovereign default; Eurozone
