Public and Private Debt: The Historical Record (1870–2010)

2014 ◽  
Vol 15 (1) ◽  
pp. 191-207 ◽  
Author(s):  
Moritz Schularick

Abstract Economists routinely emphasize the risks of excessive public borrowing, but tend to have a more benign view of private sector debt. In this study, I draw on recent comparative studies of the macroeconomic history of advanced economies since 1870. I synthesize four historical facts and argue that a more balanced view of public and private borrowing is warranted. First, while both public and private debts have increased markedly, private, not public debts have climbed to historically unprecedented levels. Second, outside war times, financial crises have typically originated in the private sector, yet the costs have increasingly been socialized. Third, the historical record shows that modern democracies have been relatively successful in managing their financial affairs, evidenced by a systematically positive response of primary balances to high debt ratios. Fourth, I demonstrate that private and public debt cycles have been tightly linked since the 1970s.

2020 ◽  
Author(s):  
Donghyun Park ◽  
Arief Ramayandi ◽  
Shu Tian

In this study, we examine how public and private debt buildup is related to currency depreciation pressure. Our empirical analysis of a panel dataset of 59 advanced and emerging markets reveals that both private and public debt exacerbate currency vulnerability. However, the evidence of a significant effect on currency depreciation pressure is more robust and consistent for private debt than public debt. Furthermore, we find that excessive private debt buildup can be particularly harmful in emerging markets. In addition, our evidence suggests that greater dependence on external financing exacerbates the impact of debt buildup on currency stress. Overall, the evidence highlights the importance of a comprehensive debt surveillance framework which monitors both public and private debt buildup, especially in emerging markets.


Author(s):  
Akingbade Urungbodi Aimola ◽  
Nicholas M. Odhiambo

Abstract This paper explores the dynamics of public and private debt in Ghana for the past 32 years. Ghana’s total public debt stock to Gross Domestic Product (GDP) ratio has remained above the 60.0% sustainability threshold recommended by the West Africa Monetary Zone (WAMZ) since 2013. Implemented bank reforms in the country show an upward trend for domestic credit to private sector by banks as a percentage of GDP. Using exploratory review approach, the paper identified fiscal dominance, cost of borrowing, deterioration in export earnings, ineffective fiscal, monetary and debt management policies coordination as factors responsible for changes in total public debt stock. On the other hand, increased domestic borrowings by government from the banks, and Deposit Money Banks’ (DMBs)’ adverse selection in private sector credit allocation affect changes in domestic credit to the private sector by banks. Of these causes, fiscal dominance is the major determinant of public and private debt in Ghana. The study, therefore, recommends that government should pursue fiscal operations that are necessary to put public debt on a declining path. In addition, effective coordination of fiscal, monetary and debt management policies need to be strengthened together with the autonomy of the Bank of Ghana in the use of its monetary policy instruments.


PLoS Medicine ◽  
2021 ◽  
Vol 18 (7) ◽  
pp. e1003717
Author(s):  
Sarah Yu ◽  
Hojoon Sohn ◽  
Hae-Young Kim ◽  
Hyunwoo Kim ◽  
Kyung-Hyun Oh ◽  
...  

Background Public–private mix (PPM) programs on tuberculosis (TB) have a critical role in engaging and integrating the private sector into the national TB control efforts in order to meet the End TB Strategy targets. South Korea’s PPM program can provide important insights on the long-term impact and policy gaps in the development and expansion of PPM as a nationwide program. Methods and findings Healthcare is privatized in South Korea, and a majority (80.3% in 2009) of TB patients sought care in the private sector. Since 2009, South Korea has rapidly expanded its PPM program coverage under the National Health Insurance (NHI) scheme as a formal national program with dedicated PPM nurses managing TB patients in both the private and public sectors. Using the difference in differences (DID) analytic framework, we compared relative changes in TB treatment outcomes—treatment success (TS) and loss to follow-up (LTFU)—in the private and public sector between the 2009 and 2014 TB patient cohorts. Propensity score matching (PSM) using the kernel method was done to adjust for imbalances in the covariates between the 2 population cohorts. The 2009 cohort included 6,195 (63.0% male, 37.0% female; mean age: 42.1) and 27,396 (56.1% male, 43.9% female; mean age: 45.7) TB patients in the public and private sectors, respectively. The 2014 cohort included 2,803 (63.2% male, 36.8% female; mean age: 50.1) and 29,988 (56.5% male, 43.5% female; mean age: 54.7) patients. In both the private and public sectors, the proportion of patients with transfer history decreased (public: 23.8% to 21.7% and private: 20.8% to 17.6%), and bacteriological confirmed disease increased (public: 48.9% to 62.3% and private: 48.8% to 58.1%) in 2014 compared to 2009. After expanding nationwide PPM, absolute TS rates improved by 9.10% (87.5% to 93.4%) and by 13.6% (from 70.3% to 83.9%) in the public and private sectors. Relative to the public, the private saw 4.1% (95% confidence interval [CI] 2.9% to 5.3%, p-value < 0.001) and −8.7% (95% CI −9.7% to −7.7%, p-value <0.001) higher rates of improvement in TS and reduction in LTFU. Treatment outcomes did not improve in patients who experienced at least 1 transfer during their TB treatment. Study limitations include non-longitudinal nature of our original dataset, inability to assess the regional disparities, and verify PPM program’s impact on TB mortality. Conclusions We found that the nationwide scale-up of the PPM program was associated with improvements in TB treatment outcomes in the private sector in South Korea. Centralized financial governance and regulatory mechanisms were integral in facilitating the integration of highly diverse South Korean private sector into the national TB control program and scaling up of the PPM intervention nationwide. However, TB care gaps continued to exist for patients who transferred at least once during their treatment. These programmatic gaps may be improved through reducing administrative hurdles and making programmatic amendments that can help facilitate management TB patients between institutions and healthcare sectors, as well as across administrative regions.


2021 ◽  
Vol 4 (1) ◽  
pp. 509-519
Author(s):  
Krzysztof Nowacki ◽  
Sandra Grabowska ◽  
Teresa Lis

Abstract A research was conducted among the employees referred to work in the home office in connection with the announced state of the epidemic in Poland. The research was conducted using a questionnaire method, the study was attended by 199 respondents. The research is burdened with an error in the selection of statistical sample units, which resulted from the respondents’ involvement and their truthfulness. The aim of the article is to assess the activities of employers from the private and state sectors in Poland, related to the delegation of employees to work in the home office, and to analyze the skills and possibilities of self-organization of work by employees. An important result of the survey was to demonstrate the differences in the behavior of public and private sector employers. The study shows that the private sector has adapted better to sudden changes than the state sector.


2020 ◽  
Vol 8 (3) ◽  
pp. 47
Author(s):  
Heung Joo Jeon ◽  
Hyun Min Oh

This study empirically analyzes the effect of debt origin on investment efficiency. According to previous studies that report that the quality of financial reporting may vary depending on the origin of the debt, the empirical analysis predicted that the effects of the origin of the debt on investment efficiency would be differential. Debt origin was divided into private and public debt. The analysis results of this study are as follows. First, there is a significant negative relationship between the private debt and investment efficiency, while there is a significant positive relationship between public debt and investment efficiency. This means that capital gains under public debt may be more profitable to managers by improving the quality of their accounting information than those under private debt. This is in line with the previous research which found that, when financing with public debt, the earnings management is reduced and accounting transparency is high. This study focuses on the origin of debt as a determinant of investment efficiency and analyzes the level of investment efficiency according to the origin of debt. We examine the sustainability of firms from the perspective of investment efficiency, such as raising capital and selecting optimal investment options. The results of this study suggest that the level of incentives and investment efficiency of managers may be differentiated depending on the origin of the debt.


Author(s):  
Jessica Fanzo ◽  
Yusra Ribhi Shawar ◽  
Tara Shyam ◽  
Shreya Das ◽  
Jeremy Shiffman

Background: Every country is affected by some form of malnutrition. Some governments and nutrition experts look to public-private partnerships (PPPs) to address the burden of malnutrition. However, nutrition-related PPPs face opposition, are difficult to form, and there is limited evidence of their effectiveness. Methods: We conducted a literature review and 30 semi-structured interviews with individuals involved in or researching nutrition-related PPPs to identify the factors that shape their creation and effectiveness in food systems. Results: Several factors make it difficult to establish nutrition-related PPPs in food systems: a lack of understanding of the causal pathways behind many nutrition problems; a weak architecture for the global governance of nutrition; power imbalances between public and private sector nutrition actors; and disagreements in the nutrition community on the advisability of engaging the private sector. These complexities in turn make it difficult for PPPs to be effective once established due to goal ambiguity and misalignment, resource imbalances, and weak accountability. Conclusion: If effective nutrition-related PPPs are to be established, private sector conflicts of interest must be addressed, trust deficits between private and public sector actors must be surmounted, and evidence must be assessed as to whether PPPs can achieve more for public health nutrition than private and public sector actors working separately.


2021 ◽  
pp. 097226292110526
Author(s):  
Jain Mathew ◽  
Kohila Rajam ◽  
Sridevi Nair

Post-privatization, public sector organizations were encouraged to borrow and learn from private sector firms. The popular belief was that the human resource practices followed by private sector organizations were far superior and more effective than those of the public sector organizations. However, this claim lacks empirical proof. This study adds to this body of knowledge by comparing the level of work engagement in private and public sector firms of India. Given that the leadership is crucial in setting the tone of an organization, the study also analyses the dominant leadership styles and their relationship to the levels of work engagement. The study is descriptive in nature and utilizes a structured questionnaire to collect data. Individuals currently employed in Indian public and private sector firms, in managerial roles, were invited to record their responses. The final sample consisted of 240 employees, with equal representation from both sectors. The collected data was then analysed using SPSS. The findings suggested that the dominant leadership styles were not significantly different in public and private sector organizations. Private sector employees were found to be more engaged and the leadership style appeared to be significantly related to the levels of engagement in public sector firms only.


2020 ◽  
Vol 9 (2) ◽  
pp. 254-263
Author(s):  
Gissele Prette Heil ◽  
Júlio Eduardo Ornelas Silva

É intrínseca a relação entre as universidades e a sociedade, em que uma influência a outra, e ambas são beneficiadas dessa relação. Entretanto, alguns autores tem refletido sobre se essa relação é equilibrada e se a resultante contribui para um ambiente socialmente democrático. Tendo por objetivo contrastar indicadores da educação superior com as reflexões de alguns autores, sob o enfoque do setor público e privado, este artigo levantou pesquisas empíricas sobre a evolução de matrículas em cursos de graduação no setor privado e público, números de instituições de educação superior públicas e privadas, programas de financiamento estudantil e de assistência estudantil. Por meio de análises interpretativistas, concluiu-se que o Estado tem direcionado o enfoque da educação superior para o setor privado, ao mesmo tempo em que tem promovido políticas públicas para o financiamento e assistência aos estudantes que desejam ingressar e permanecer em cursos de graduação. Palavras-Chave: Universidades. Gestão Universitária. Educação Superior. Indicadores. Abstract: The relationship between universities and society is intrinsic, in which one influence the other, and both benefit from this relationship. However, some authors have reflected whether this relationship is balanced and whether the resulting one contributes to a socially democratic environment. With the objective of contrasting higher education indicators whit the reflections of some authors, under the public and private sector approach, this article raised empirical research on the evolution of enrollment in undergraduate courses in the private and public sector, numbers of higher education institutions public and private, student finance and student assistance programs. Through interpretive analysis, it was conclude that the State has directed the focus of higher education on the private sector, while promoting public policies for financing and assisting students who wish to enter and remain in undergraduate courses. Keywords: Universities. University Management. Higher Education. Indicators.  


2018 ◽  
Vol 5 (01) ◽  
Author(s):  
Sanjeev Kumar ◽  
Prem Prakash

This paper analyses the growth and structure of NPAs in priority and non-priority sector lending of public vis-a-vis private sector banks from the year 2004 to 2017. The exponential growth rate, co-efficient of correlation and co-efficient of variation has been calculated. The null and alternative hypothesis with respect to NPAs has been tested with t-test at 5% level of significance. It was found that, both the priority and nonpriority sector NPAs have contributed significantly to total NPAs of the banks. However, non-priority sector NPAs contribution to total NPAs was found to be more than priority sector NPAs, both in case of public as well as private sector banks from the year 2013 onwards. The reduction in entire NPAs is difficult for the banks in the short as well as long run, keeping in view the risks attached with the priority sector lending on the one hand and the social responsibility of the banking sector on the other hand. It is recommended that, government, policy makers, private and public sector banks should make efforts for reducing sector-wise NPA


Author(s):  
Gayle Allard ◽  
Amanda Trabant

Public-Private Partnerships (PPP), a marriage between public- and private-sector activity, have been employed for almost two decades as a third way to optimize the use of public funds and boost the quality of services traditionally provided by the public sector. Their use has spread from the United Kingdom to Europe and beyond, and has expanded from the transport sector to innovative projects in health, education and others. In Spain, successive governments have seized on PPPs as a solution to budget constraints at a time of dwindling EU aid and stricter fiscal targets. As a result, the use of PPPs at all levels of government has exploded since 2003 and most recently culminated in a major infrastructure plan which relies on the private sector for 40% of its total investment. Undoubtedly, this trend will bring benefits to the Spanish population in terms of more abundant, lower-cost and higher-quality services. However, there are risks implicit in the way PPP is unfolding in Spain that could limit and even undo these benefits unless steps are taken to coordinate, monitor and follow up public-private projects and to communicate their virtues to the public. Spain presents an interesting paradox in the history of PPP. While it is one of Europes oldest, most active and most enthusiastic users of PPP, it is at the same time one of the countries that has demonstrated least interest at an official level in informing, monitoring, regulating and following up projects to ensure that their deepest benefits are being achieved. Relying on PPP only for private financing entails a risk that the benefits of PPP will not be realized and public services will actually become more expensive and less satisfactory over the medium and long term. The Spanish government is advised to take steps similar to those taken in the United Kingdom, to ensure that PPP is managed correctly and hence becomes an asset and not a liability to Spanish citizens.


Sign in / Sign up

Export Citation Format

Share Document