The impact of private debt on public finances
How does private debt accumulate? Considering its interconnectedness with financial institutions, can a rise in private debt result in a financial crisis that may spread to the real sector and generate public debt? The EU-funded ACEPOL project will answer these questions. It will develop new statistical learning, econometric and algorithmic techniques and apply them to an agent-based computational economics model. This will enable researchers to analyse private and public debt dynamics by closely following the financial and real sectors at the micro level. The findings of this project will improve our understanding about which ex ante policy measures should be used to avoid debt-triggered crises and which ex ante policy interventions might help in mitigating their negative effects.
Call for proposal
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