美通社

2024-11-14 13:15

CKGSB Professor Neng Wang Co-Authored Paper on Government Debt with Nobel Laureate Thomas J. Sargent Among Others

BEIJING, Nov. 14, 2024 /PRNewswire/ -- Professor Neng Wang, Dean's Distinguished Chair Professor of Finance and Senior Associate Dean at Cheung Kong Graduate School of Business (CKGSB), recently co-authored a paper with Nobel laureate Thomas J. Sargent, among others, published in PNAS entitled "Managing Government Debt". PNAS, or the Proceedings of the National Academy of Sciences, is the journal of the US National Academy of Sciences, often known as one of the three most prestigious general-science journals alongside Nature and Science.

Neng Wang, Dean's Distinguished Chair Professor of Finance, Cheung Kong Graduate School of Business (CKGSB)
Neng Wang, Dean's Distinguished Chair Professor of Finance, Cheung Kong Graduate School of Business (CKGSB)

The paper works out a new stochastic model of tax rates and debt/GDP framework for governments to improve fiscal management in uncertain times.

A low debt-to-GDP ratio signals a country is producing more than it owes, placing it on a strong financial footing, whereas a high ratio imperils public services and asset transfer between rich and poor, as a government is pushed to tax more and spend less. The authors extended Barro's model with the risks and opportunities parameters and argue that a government should keep its debt-GDP ratio stable and adopt a stable tax rate that can finance a certain amount of its surplus to GDP. They found that by buying or selling Shiller GDP-linked securities, a government can hedge its primary surplus risk, get risk-free debt, stabilize its debt-to-GDP ratio and keep tax rates level, hence becoming more financially sustainable.

The study offers guidance for finance ministers and the economists behind them to manage government debt with a sustainable mindset, as governments struggle with public spending caps in a post-COVID crisis era.

This paper is co-authored by Neng Wang, CKGSB Dean's Distinguished Chair Professor of Finance; Thomas J. Sargent, Nobel Prize winner in Economics, Professor of Economics at New York University and Senior Fellow at the Hoover Institution at Stanford University; Professor Wei Jiang of the Department of Industrial Engineering and Decision Analytics at the Hong Kong University of Science and Technology; and Professor Jinqiang Yang of the School of Finance at Shanghai University of Finance and Economics. 

A follow-up study, already accepted by the Journal of Finance, entitled "A p Theory of Taxes and Debt Management", sees Professor Neng Wang and his co-authors, further exploring the factors that determine the maximal sustainable government debt-to-GDP ratio by showing what happens if there is a debt default.

source: Cheung Kong Graduate School of Business (CKGSB)

【你點睇?】特朗普批澤連斯基是「未經選舉的獨裁者」,俄烏戰爭早應停止。你是否認同特朗普的說法?► 立即投票

人氣文章
最近7天
1
港股 | 蕭猷華:內地AI發展迅速,阿里巴巴股價看俏
2
高息定存 | 一周高息合集,銀行高息搶存,富邦1個月4.88厘,華僑1年期3.6厘
3
PapaHome淘寶家具實體店22日開幕,選址尖沙咀中港城,料創100個就業機會
4
高息定存 | 華僑銀行推新春港元定存優惠,88天或188天享3.68厘
5
高息定存 | 一周高息合集,蛇年定存金蛇起舞,1個月定存高達8厘
6
英偉達 | DeepSeek衝擊AI晶片行業結構 英偉達暴跌仍未急抄底
7
啟德體育園明天足球賽測試,4.4萬公僕參與涉逾400萬車馬費
8
電騙 | 黃俊碩:多管齊下,防治內地留學生受騙
9
環球央行 | 歐洲央行宣布再次減息0.25厘,符合市場預期
10
專訪 | 關稅戰 | 香港物流協會副會長梁庭彰:美物流商停收包裹對跨境電商打擊重大
11
易經看世界 | 乙巳蛇年趨吉五招:言行注意甚麼?應遠離甚麼人?(有片)
12
高息定存 | 一周高息合集,減息預期降溫,銀行3個月最高5.68厘,6個月3.55厘
13
港股 | 午市前瞻 | iPhone SE難救中國市場 專家提醒比電已超買
14
【FOCUS】螺絲殼裏做道場,DeepSeek致勝啟示
15
【FOCUS】悟空、哪吒、DeepSeek,如何啟示香港
16
大S | 台灣藝人徐熙媛因流感併發肺炎逝世,享年48歲
17
DeepSeek推出即上蘋果中國區榜首,能力直追OpenAI
18
日入而息 | 習近平據報下周見科企領袖,證監會審視8券商孖展風控,大酒店轉蝕9億
19
收市短打 | 楊韻銳:港股升勢有成交配合 惟留意關鍵阻力位!
20
高息定存 | 信銀國際12個月港元定存高達3.5厘
21
港股 | 午市前瞻 | AI應用概念炒作有錢途 下階段部署邊隻好?
22
彭博亞洲20大富裕家族,香港5大家族上榜,新地郭氏排名最高,無李嘉誠李兆基?
23
港股 | 蕭猷華:春節假後,恒指逐步上望21000點
24
David Webb:因病情惡化,將有序結束個人財經網站
25
民營企業座談會 | 習近平在京出席民營企業座談會
26
高息定存 | 一周高息合集,3個月5厘之選有邊間?6個月最高3.55厘
27
AI | 蔡崇信確認阿里與蘋果合作,撰文談DeepSeek崛起帶來兩大啟示
28
神州經脈 | 習近平:經濟政策不會變,民企大顯身手正當其時
29
港股 | 蕭猷華:恒指升勢可持續?
30
譚仔 | 譚仔國際日資大股東溢價76%建議私有化今復牌,上市不足三年半
專業版
HV2
精裝版
SV2
串流版
IQ 登入
強化版
TQ
強化版
MQ

etnet榮膺「第九屆傳媒轉型大獎」四大獎項

【限時優惠$68/月】申請etnet強化版MQ手機串流報價服務 捕捉板塊輪動,提高獲利勝算

etnet榮獲HKEX Awards 2023 「最佳證券數據供應商」大獎

2025-26年度財政預算案

大國博弈

說說心理話

Watch Trends 2024

北上食買玩

Art Month 2024

理財秘笈

流感高峰期

山今養生智慧

輕鬆護老