Abstract
With the growing debt harbored by the United States becoming harder to sustain, one believes it is imperative to research the effect of increases in public debt and events related to debt management policy on our financial system. In fleshing out this relationship, this paper can supplement the literature surrounding the development of nations through marketable debt products, the behavior of our financial markets and proper public debt management. This study considers the rationality of the market, as it is influenced by this exogenous variable over time, and how that relates to an equity’s price movements. Utilizing a vector-autoregression and structural vector-autoregression estimated with OLS, I will determine how events related to public debt affect equities.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
