Home About us Contact
|
Home About us Contact | ||
|
|
||
Debt
Kinds of Debt Terms modified by Debt Selected AbstractsINCOME DISTRIBUTION, SOVEREIGN DEBT, AND PUBLIC INVESTMENTECONOMICS & POLITICS, Issue 3 2005Cem Karayalçin We develop a political economy model of sovereign debt that shows that income inequality leads to popular pressures on the government to use foreign debt to finance a redistribution of income at the expense of productive public investment. Recognizing this fact, international lenders impose credit ceilings with the consequence that developing country borrowers invest less and grow slower. [source] ESTIMATING THE TAX BENEFITS OF DEBTJOURNAL OF APPLIED CORPORATE FINANCE, Issue 1 2001John Graham The standard approach to valuing interest tax shields assumes that full tax benefits are realized on every dollar of interest deduction in every scenario. The approach presented in this paper takes account of the possibility that interest tax shields cannot be used in some scenarios, in part because of variations in the firm's profitability. Because of the dynamic nature of the tax code (e.g., tax-loss carrybacks and carryforwards), it is necessary to consider past and future taxable income when estimating today's effective marginal tax rate. The paper uses a series of numerical examples to show that (1) the incremental value of an extra dollar of interest deduction is equal to the marginal tax rate appropriate for that dollar; and (2) a firm's effective marginal tax rate (and therefore the marginal benefit of incremental interest deductions) can actually decline as the firm takes on additional debt. Based on marginal benefit functions for thousands of firms from 1980,1999, the author concludes that the tax benefits of debt averaged approximately 10% of firm value during the 1980s, while declining to around 8% in the 1990s. By taking maximum advantage of the interest tax shield, the average firm could have increased its value by approximately 15% over the 1980s and 1990s, suggesting that the consequences of being underlevered are significant. Surprisingly, many of the companies that appear best able to service debt (i.e., those with the lowest apparent costs of debt) use the least amount of debt, on average. Treasurers and CFOs should critically reevaluate their companies' debt policies and consider the benefits of additional leverage, even if taking on more debt causes their credit ratings to slip a notch. [source] PUBLIC DEBT AS PRIVATE WEALTH: SOME EQUILIBRIUM CONSIDERATIONSMETROECONOMICA, Issue 4 2006Article first published online: 13 NOV 200, Ekkehart Schlicht ABSTRACT Government bonds are interest-bearing assets. Increasing public debt increases wealth, income and consumption demand. The smaller government expenditure is, the larger consumption demand must be in equilibrium, and the larger must be public debt. Conversely, lower public debt implies higher government spending and taxation. Public debt plays, thus, an important role in establishing equilibrium. It distributes output between consumers and government. In case of insufficient demand, a larger public debt entails higher private consumption and less public spending. If upper bounds on public debt are introduced (as in the Maastricht treaty), such constraints place lower bounds on taxation and public spending and may rule out macroeconomic equilibrium. As an aside, a minor flaw in Domar's (American Economic Review, 34 (4), pp. 798,827) classical analysis is corrected. [source] AN ENDOGENOUS GROWTH MODEL WITH PUBLIC CAPITAL AND SUSTAINABLE GOVERNMENT DEBT,THE JAPANESE ECONOMIC REVIEW, Issue 3 2007ALFRED GREINER This paper presents and analyses an endogenous growth model with public capital and public debt. It is assumed that the ratio of the primary surplus to gross domestic income is a positive linear function of the debt income ratio which assures that public debt is sustainable. The paper then derives necessary conditions for the existence of a sustainable balanced growth path for the analytical model. Further, simulations are undertaken in order to gain insight into stability properties of the model and in order to analyse growth effects of deficit financed increases in public investment. The latter is done for the model on the sustainable balanced growth path as well as for the model along the transition path. [source] CONVERTIBLE DEBT AND RISK-SHIFTING INCENTIVESTHE JOURNAL OF FINANCIAL RESEARCH, Issue 4 2009Assaf Eisdorfer Abstract I argue that convertible debt, in contrast to its perceived role, can produce shareholders' risk-shifting incentives. When a firm's capital structure includes convertible debt, every investment decision affects not only the distribution of the asset value but also the likelihood that the debt will be converted and thereby the distribution of the firm's leverage. This suggests that managers can engage in risk-increasing projects if a higher asset risk generates a more favorable distribution of leverage. Empirical evidence using 30 years of data supports my argument. [source] STRATEGIC DEBT AND RJV COMPETITION: ERRATUMAUSTRALIAN ECONOMIC PAPERS, Issue 3 2007SHIOU SHIEH The purpose of this note is to point out that there is a computing error made in the derivation of the t value in Chen (2005). The erratum presents the correct expression of t and the ensuing changes in the results of Chen (2005). [source] THE SYSTEMATIC RISK OF DEBT: AUSTRALIAN EVIDENCE,AUSTRALIAN ECONOMIC PAPERS, Issue 1 2005KEVIN DAVISArticle first published online: 21 FEB 200 This paper examines systematic risk (betas) of Australian government debt securities for the period 1979,2004 and makes three contributions to academic research and practical debate. First, the empirical work provides direct evidence on the systematic risk of government debt, and provides a benchmark for estimating the systematic risk of corporate debt which is relevant for cost of capital estimation and for optimal portfolio selection by asset managers such as superannuation funds. Second, analysis of reasons for non-zero (and time varying) betas for fixed income securities aids understanding of the primary sources of systematic risk. Third, the results cast light on the appropriate choice of maturity of risk free interest rate for use in the Capital Asset Pricing Model and have implications for the current applicability of historical estimates of the market risk premium. Debt betas are found to be, on average, significantly positive and (as expected) closely related, cross sectionally, to duration. They are, however, subject to significant time series variation, and over the past few years the pre-existing positive correlation between bond and stock returns appears to have vanished. [source] Linking Social Development with the Capacity to Carry Debt: Towards an MDG-Consistent Debt-Sustainability ConceptDEVELOPMENT POLICY REVIEW, Issue 3 2009Bernhard G. Gunter Owing to concerns among low-income countries that the new debt sustainability framework of the Bretton Woods institutions may lock them into a so-called ,low debt-low growth' scenario, the United Nations has called for a more MDG-consistent debt-sustainability concept. This article shows that there is a robust relationship between achieving the Millennium Development Goals and having a higher capacity to carry debt. It then discusses options for modifying the current debt-sustainability framework, and suggests that including progress made in achieving the MDGs in determining borrowing limits would be a first step towards adopting such a concept. [source] Liquidity Constrained Markets Versus Debt Constrained MarketsECONOMETRICA, Issue 3 2001Timothy J. Kehoe This paper compares two different models in a common environment. The first model has liquidity constraints in that consumers save a single asset that they cannot sell short. The second model has debt constraints in that consumers cannot borrow so much that they would want to default, but is otherwise a standard complete markets model. Both models share the features that individuals are unable to completely insure against idiosyncratic shocks and that interest rates are lower than subjective discount rates. In a stochastic environment, the two models have quite different dynamic properties, with the debt constrained model exhibiting simple stochastic steady states, while the liquidity constrained model has greater persistence of shocks. [source] Long-Term Debt and Optimal Policy in the Fiscal Theory of the Price LevelECONOMETRICA, Issue 1 2001John H. Cochrane The fiscal theory says that the price level is determined by the ratio of nominal debt to the present value of real primary surpluses. I analyze long-term debt and optimal policy in the fiscal theory. I find that the maturity structure of the debt matters. For example, it determines whether news of future deficits implies current inflation or future inflation. When long-term debt is present, the government can trade current inflation for future inflation by debt operations; this tradeoff is not present if the government rolls over short-term debt. The maturity structure of outstanding debt acts as a "budget constraint" determining which periods' price levels the government can affect by debt variation alone. In addition, debt policy,the expected pattern of future state-contingent debt sales, repurchases and redemptions,matters crucially for the effects of a debt operation. I solve for optimal debt policies to minimize the variance of inflation. I find cases in which long-term debt helps to stabilize inflation. I also find that the optimal policy produces time series that are similar to U.S. surplus and debt time series. To understand the data, I must assume that debt policy offsets the inflationary impact of cyclical surplus shocks, rather than causing price level disturbances by policy-induced shocks. Shifting the objective from price level variance to inflation variance, the optimal policy produces much less volatile inflation at the cost of a unit root in the price level; this is consistent with the stabilization of U.S. inflation after the gold standard was abandoned. [source] Financial Frictions and Risky Corporate DebtECONOMIC NOTES, Issue 1 2007Doriana Ruffino We offer clarifications on Cooley and Quadrini (2001) regarding financial frictions and risky corporate debt pricing. Even in a frictionless world, the promised rate on corporate debt is not identical across firms and across capital structures and it is not equal to the risk-free rate. Frictions are unnecessary for credit spreads to arise. Only if the macroeconomy is in actuality risk free or risk neutral do interest rates on corporate debt reflect default probabilities. To the extent that the firm's entire financial structure is traded, a bias in credit spreads introduces an exploitable arbitrage opportunity. Re-establishing no-arbitrage, firm dynamics move in the opposite direction to Cooley and Quadrini's. [source] UK Household Debt: A Threat to Growth or Stability?ECONOMIC OUTLOOK, Issue 1 2005Article first published online: 2 FEB 200 The liberalisation of credit constraints in the 1970s for UK consumers has had important implications for the housing market and consumer spending. This paper by John Muellbauer1 examines the factors that have driven soaring consumer debt and house price levels; in particular those observed since the mid-1990s. By relying on recent econometric evidence and trends in credit availability, real income per head, nominal and real after tax mortgage rates, measures of perceived risk and broad demographic trends, it also analyses the prospects for house prices, mortgage debt and unsecured debt over the coming years. The outlook is for a ,soft landing' in the housing market and associated declines in the rate of growth of consumer debt, which, although probably not smooth, does suggest the underlying situation is more benign and less crisis-prone than it was in 1988,89. [source] Internal Capital Markets and Capital Structure: Bank Versus Internal DebtEUROPEAN FINANCIAL MANAGEMENT, Issue 3 2010Nico Dewaelheyns G32; G21 Abstract We argue that domestic business groups are able to actively optimise the internal/external debt mix across their subsidiaries. Novel to the literature, we use bi-level data (i.e. data from both individual subsidiary financial statements and consolidated group level financial statements) to model the bank and internal debt concentration of non-financial Belgian private business group affiliates. As a benchmark, we construct a size and industry matched sample of non-group affiliated (stand-alone) companies. We find support for a pecking order of internal debt over bank debt at the subsidiary level which leads to a substantially lower bank debt concentration for group affiliates as compared to stand-alone companies. The internal debt concentration of a subsidiary is mainly driven by the characteristics of the group's internal capital market. The larger its available resources, the more intra-group debt is used while bank debt financing at the subsidiary level decreases. However, as the group's overall debt level mounts, groups increasingly locate bank borrowing in subsidiaries with low costs of external financing (i.e. large subsidiaries with important collateral assets) to limit moral hazard and dissipative costs. Overall, our results are consistent with the existence of a complex group wide optimisation process of financing costs. [source] Why Do Firms Raise Foreign Currency Denominated Debt?EUROPEAN FINANCIAL MANAGEMENT, Issue 4 2001Evidence from Finland This study examines the determinants of the decision to raise currency debt. The results suggest that hedging figures importantly in the currency,of,denomination decision: firms in which exports constitute a significant fraction of net sales are more likely to raise currency debt. However, firms also tend to borrow in periods when the nominal interest rate for the loan currency, relative to other currencies, is lower than usual. This is consistent with the currency debt issue decision being affected by speculative motives. Large firms, with a wider access to the international capital markets, are more likely to borrow in foreign currencies than small firms. [source] Constitutionalism and Dissonances: Has Europe Paid Off Its Debt to Functionalism?EUROPEAN LAW JOURNAL, Issue 3 2009Marco Dani This impression seems confirmed by the recent Presidency Conclusions of the European Council which, although salvaging many important solutions contained in the Constitutional Treaty, explicitly sanction that ,the constitutional concept . . . is abandoned'. In the light of this context, what role could the constitutional scholarship play? How to make sense of a polity in which the claims of constitutionalism as a form of power are politically unappealing though legally plausible? This article tries to respond to these questions by reaffirming functionalism as a valid analytical and normative perspective in facing the current constitutional reality of European integration. The analytical value associated with functionalism is evidenced by testing against the current context of the EU legal framework the accounts for EU constitutionalism which postulate functional equivalence between the EU and the Member States. The normative potential of functionalism, then, is discussed by arguing that there may be a value worth preserving in a degree of functional discrepancy between the EU and state constitutionalism and, notably, that the transformative and civilising dividend inherent in functionalism could still be exploited, at least in certain areas of EU policy making. Finally, the article suggests that the difficulties in accounting for EU constitutionalism in the light of state-centred constitutional theory could be regarded as symptoms of European integration marking a moment in the theoretical evolution of constitutionalism. [source] The Notching Rule for Subordinated Debt and the Information Content of Debt RatingFINANCIAL MANAGEMENT, Issue 2 2010Kose John This paper provides new evidence regarding the information content of debt ratings. We show that noninvestment grade subordinated issues are consistently priced too high (the yield is too low), and the reverse is true for some investment grade bonds. We relate this empirical bias to a notching rule of thumb that is used in order to rate subordinated debt without expending additional resources for information production. We propose an explanation for these findings based upon a balance between an attempt to please the companies that pay the raters versus a concern for lawsuits and regulatory investigations should ratings be too optimistic. [source] Are Debt and Incentive Compensation Substitutes in Controlling the Free Cash Flow Agency Problem?FINANCIAL MANAGEMENT, Issue 3 2009Yilei Zhang This paper investigates the governance implications of a firm's capital structure and managerial incentive compensation in controlling the free cash flow agency problem. The results suggest: debt and executive stock options act as substitutes in attenuating a firm's free cash flow problem; failure to incorporate the substitutability and endogeneity leads to underestimates of the magnitude and economic implication of the disciplinary role of both mechanisms; firm characteristics differ across the prevalence of debt usage versus option usage, suggesting the heterogeneity in the costs and benefits of the monitoring devices; and all the above effects are more pronounced in firms that tend to have more severe agency problem. [source] Art As Religious Commitment: Kafka's Debt to Kierkegaardian Ideas and their Impact on his Late StoriesGERMAN LIFE AND LETTERS, Issue 4 2000Leena Eilttä Although Kafka's reception of Kierkegaardian ideas has received much critical attention the critics have so far paid little heed to similarities between Kierke-gaard's religious and Kafka's aesthetic views. My intention in the following is to show that in spite of Kafka's critical remarks on his philosophy, Kierkegaard's definition of a religious person influenced his description of the artist's existence in Erstes Leid (1922), Ein Hungerkünstler (1922) and Josefine, die Sängerin oder das Volk der Mäuse (1924). In these stories Kafka turns Kierkegaard's ideas about spiritual inwardness and passionate attitude towards religious life into artistic inwardness and passionate attitude towards art. He also describes how devotion that these artists feel towards their art leads to their solitude and how their lives reflect suffering, doubt and despair which is similar to Kierkegaard's description of religious suffering. Kafka's critical remarks on Kierkegaard's philosophy should therefore be understood as a clear rejection of Kierkegaard's Protestant theology, although these same ideas gave him inspiration to formulate his views on the artist's existence. [source] Accruals quality and corporate cash holdingsACCOUNTING & FINANCE, Issue 1 2009Pedro J. García-Teruel G31; G32 Abstract This Work Uses Panel Data For Firms Listed In The Spanish Stock Exchange Over The Period From 1995 To 2001 To Analyse The Effect Of Accounting Quality On Cash Holdings. The Results Show That Firms With Good Accruals Quality Hold Lower Cash Levels Than Firms With Poor Accruals Quality. This Finding Suggests That The Quality Of Accounting Information May Reduce The Negative Effects Of Information Asymmetries And Adverse Selection Costs, Allowing Firms To Reduce Their Level Of Corporate Cash Holdings. The Results Also Show That Cash Holdings Decrease When Firms Increase Their Use Of Bank Debt And In The Presence Of Cash Substitutes. In Contrast With This, Firms With Higher Cash Flow Hold Higher Levels Of Cash. [source] Debt as a source of financial stress in Australian householdsINTERNATIONAL JOURNAL OF CONSUMER STUDIES, Issue 1 2006Andrew C. Worthington Abstract This paper examines the role of demographic, socio-economic and debt portfolio characteristics as contributors to financial stress in Australian households. The data are drawn from the most recent Household Expenditure Survey and relate to 3268 probability-weighted households. Financial stress is defined, among other things, in terms of financial reasons for being unable to have a holiday, to have meals with family and friends, to engage in hobbies and other leisure activities, and general money management. Characteristics examined include family structure and composition, source and level of household income, age, gender and marital status, ethnic background, housing value, debt repayment of various types and credit card usage. Binary logit models are used to identify the source and magnitude of factors associated with financial stress. The evidence provided suggests that financial stress is higher in families with more children and those from ethnic minorities, especially when reliant on government pensions and benefits, and lower in families with higher disposable incomes and housing values. There is weak evidence that Australia's historically high levels of household debt cause financial stress. [source] Managerial Opportunism and Capital Structure Adjustments: Equity,for,debt Swap and Convertible DebtINTERNATIONAL REVIEW OF FINANCE, Issue 1 2002Nobuyuki IsagawaArticle first published online: 16 MAY 200 This paper shows how capital structure adjustments through an equity,for,debt swap and convertible debt can resolve the inefficiency caused by managerial opportunism. We consider a situation in which a corporate manager's investment decision is affected by the firm's debt level. Although both an equity,for,debt swap and convertible debt can induce the self,interested manager to undertake only value,increasing projects through capital structure adjustments, there exists a significant difference between these two financial instruments. An equity,for,debt swap, which requires the agreement of both shareholders and debt holders, can change a firm's debt level only prior to the manager's investment decision. On the other hand, convertible debt, which gives debt holders a unilateral right to convert, can change a firm's debt level even after the manager's investment decision. [source] Earnings Management through Transaction Structuring: Contingent Convertible Debt and Diluted Earnings per ShareJOURNAL OF ACCOUNTING RESEARCH, Issue 2 2005CAROL MARQUARDT ABSTRACT In this article we examine whether firms structure their convertible bond transactions to manage diluted earnings per share (EPS). We find that the likelihood of firms issuing contingent convertible bonds (COCOs), which are often excluded from diluted EPS calculations under Statement of Financial Accounting Standard (SFAS) 128, is significantly associated with the reduction that would occur in diluted EPS if the bonds were traditionally structured. We also document that firms' use of EPS-based compensation contracts significantly affects the likelihood of COCO issuance and find weak evidence that reputation costs, measured using earnings restatement data, play a role in the structuring decision. These results are robust to controlling for alternative motivations for issuing COCOs, including tax and dilution arguments. In addition, an examination of announcement returns reveals that investors view the net benefits and costs of COCOs as offsetting one another. Our results contribute to the literature on earnings management, diluted EPS, financial reporting costs, and financial innovation. [source] DEMOCRATIC REPUBLIC OF CONGO: Paris Club Restructures DebtAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 2 2010Article first published online: 1 APR 2010 No abstract is available for this article. [source] Financial Debt and Suicide in Hong Kong SAR,JOURNAL OF APPLIED SOCIAL PSYCHOLOGY, Issue 12 2007Paul S. F. Yip The presence of indebtedness is known to be a risk factor that can trigger stressed persons to contemplate suicide. This study compares the profiles of suicides with and without debt problems based on 2002 Coroner's Court death files. The category of men aged 25,39 has seen a 70% increase in suicide rate since 1997, and the number using carbon monoxide poisoning has increased from 1% of the total deaths in 1997 to about 26% of the total deaths in 2002. Suicides associated with debt problems seem to involve fewer mental and physical problems with formal job attachment than do suicides without debt problems. Gambling is a significant contributing factor to unmanageable indebtedness. [source] Factors Influencing Levels of Credit-Card Debt in College Students,JOURNAL OF APPLIED SOCIAL PSYCHOLOGY, Issue 5 2003Jill M. Norvilitis The current study examined the relationship between money attitudes, impulsivity, locus of control, life satisfaction, and stress and credit-card debt in 227 college students. Students reported an average credit-card debt of $ 1,518, with over 75% of students holding at least one credit card. Students with credit cards from on-campus solicitation had higher debt-to-income ratios than did those with credit cards from other sources. Personality variables were generally unrelated to level of debt, although they were related to attitudes toward money. Many students requested information about credit and debt, suggesting that knowledge of financial issues may be an important variable for future consideration. [source] Corporate Debt Financing and Earnings QualityJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 5-6 2010Aloke (Al) Ghosh Abstract:, Our study establishes linkages between two extensively researched areas, debt financing and the quality of earnings. Debt can have a ,positive influence'on earnings quality because managers are likely to use their accounting discretion to provide private information about the firms' future prospects to lower financing costs. For high debt, it can also have a ,negative influence' on earnings quality as managers use accruals aggressively to manage earnings to avoid covenant violations. Using accruals quality as a proxy for earnings quality, we document a non-monotonic (curvilinear) relation between debt and earnings quality. The relationship is positive at low levels of debt and negative at high debt levels with an inflection point around 41%. Our results suggest that firms that rely heavily on debt financing might be willing to bear higher costs of borrowing from lower earnings quality because the benefits from avoiding potential debt covenant violations exceed the higher borrowing costs. [source] Financial Restatements, Cost of Debt and Information Spillover: Evidence From the Secondary Loan MarketJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 9-10 2009Jong Chool Park Abstract:, In this paper, we investigate the effect of financial restatements on the debt market. Specifically, we focus on the secondary loan market, which has become one of the largest capital markets in the US, and ask the following: (1) whether financial restatements increase restating firm's cost of debt financing and (2) whether the information about restatements arrives at the secondary loan market earlier than at the stock market? Using 176 restatement data, we find significant negative abnormal loan returns and increased bid-ask spreads around restatement announcements. Furthermore, this negative loan market reaction is more pronounced when the restatement is initiated by either the SEC or auditors, and when the primary reason for restatement is related to revenue recognition issues. Additionally, we find restatement information arrives at the secondary loan market earlier than at the equity market, and that such private information quickly flows into the equity market. We also show that stock prices begin to decline approximately 30 days prior to the restatement announcements for firms with traded loans. However, we do not find such informational leakage for firms without traded loans. Collectively, the results of this paper suggest: (1) increased cost of debt financing after restatements and (2) superior informational efficiency of the secondary loan market to the stock market. [source] Household Debt and Income Inequality, 1963,2003JOURNAL OF MONEY, CREDIT AND BANKING, Issue 5 2008MATTEO IACOVIELLO income inequality; household debt; credit constraints; incomplete markets I construct an economy with heterogeneous agents that mimics the time-series behavior of the earnings distribution in the United States from 1963 to 2003. Agents face aggregate and idiosyncratic shocks and accumulate real and financial assets. I estimate the shocks that drive the model using data on income inequality, aggregate income, and measures of financial liberalization. I show how the model economy can replicate two empirical facts: the trend and cyclical behavior of household debt and the diverging patterns in consumption and wealth inequality over time. While business cycle fluctuations can account for the short-run changes in household debt, its prolonged rise of the 1980s and the 1990s can be quantitatively explained only by the concurrent increase in income inequality. [source] Debt, democratization, and development in Latin America: How policy can affect global warmingJOURNAL OF POLICY ANALYSIS AND MANAGEMENT, Issue 1 2008René W. Aubourg The environmental Kuznets curve (EKC) hypothesis conjectures a nonlinear relationship between pollution and economic growth, such that pollution per capita initially increases as countries economically develop, but then reaches a maximum point before ultimately declining. Much of the EKC literature has focused on testing this basic hypothesis and, in studies that find evidence of an EKC, estimating the "turning point" level of development at which the per capita pollution-growth relationship changes sign. This approach has not emphasized the policy relevance of specification issues or the potential role of policy variables. This research explores a modified EKC specification which conditions the pollution-growth relationship on a country's level of debt and degree of democratization. These variables turn out to be significant, implying that different political and economic contexts can shift EKCs and their turning points. These findings suggest that policies to relieve debt burdens and institute political reform, in addition to their usual justifications, also could be used as a strategy to reduce carbon emissions from developing countries. © 2008 by the Association for Public Policy Analysis and Management. [source] Public Debt, Migration, and Shortsighted PoliticiansJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 5 2004Christian Schultz We analyze a model where local public debt levels are set by politicians who are chosen in local elections. Migration causes an externality across districts, and leads to overaccumulation of local public debt. Since debt is a strategic substitute, the median voters in each district prefer shortsighted political leaders who "borrow and spend," thereby exacerbating the problem of overaccumulation of local public debt. [source] | ||||||||||||||||||||||||||||||||||||||||||||||