Skip to content

Excel Spreadsheet to Implement Optimal Debt Management Analysis in Excel

Notifications You must be signed in to change notification settings

sakibigio/BNP-OptimalDebtManagment

Repository files navigation

BNP-OptimalDebtManagment

Excel Spreadsheet to Implement Optimal Debt Management Analysis in Excel

This repository provides excel sheets and a readmen file to produce an implementation in Microsoft Excel of the debt-maturity optimization model in Bigio, Nuno, and Passadore (2022), forthcoming at the Journal of Political Economy: Macroeconomics. The paper characterizes the optimal debt-maturity management problem of a government that issues a continuum of finite-maturity bonds in the presence of liquidity costs.

This repository is created to facilitate debt management offices with a simple model to plan and evaluate their debt management practices.

The Excel File

The Excel file is organized in five sheets.

In Parameters, the user inputs the parameters of the model, as well as the initial distribution of debt and the exogenous paths of output and the international risk-free interest rate.

The sheet Steady State computes the steady state values of the main variables and Dynamics computes the transitional dynamics of the model. The sheet Run contains a button to run the algorithm that finds the optimal maturity structure. Finally, the sheet Graphs contains some plots to visually analyze the transitional dynamics.

Prepared by: Maria Arroyo CEMFI PhD Student (email: maria.arroyo@cemfi.edu.es). This document was prepared during an internship at the Bank of Spain.

About

Excel Spreadsheet to Implement Optimal Debt Management Analysis in Excel

Resources

Stars

Watchers

Forks

Releases

No releases published

Packages

No packages published

Languages