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# Table 2 Descriptive statistics of profit sensitivity

From: How can states benefit from the equity premium puzzle? Debt as revenue source for Swiss cantons

Debt strategy/parameter | Median | Mean | Std. dev. | Min. | Max. |
---|---|---|---|---|---|

(1) annual adjustment to optimal debt level | |||||

B_{0} (initial debt level)
| 5.18 | 7.03 | 6.55 | 1.05 | 36.07 |

\( {\widehat{\mathrm{B}}}^{\ast } \) (optimal debt level) | 16.75 | 17.74 | 12.08 | 1.80 | 66.55 |

\( {\widehat{\mathrm{B}}}_1^{\ast } \)/rev. (optimal debt in % of receipts) | 161.41% | 178.67% | 1.34 | 0.00% | 720.07% |

i_{0} (observed initial interest rate)
| 2.46% | 2.51% | 0.01 | 0.00% | 6.44% |

\( {\widehat{\mathrm{i}}}_0 \) (estimated initial interest rate based on B_{0})
| 2.46% | 2.41% | 0.01 | 0.09% | 5.28% |

\( {\widehat{\mathrm{i}}}_1 \) (estimated interest rate at \( {\widehat{\mathrm{B}}}^{\ast } \)) | 3.24% | 3.28% | 0.01 | 0.35% | 6.88% |

\( \widehat{\uppi} \) (estimated profit [in % of total receipts]) | 1.45% | 4.78% | 7.05 | 0.00% | 50.25% |

Profitable years per canton | 14.50 | 11.54 | 7.21 | 0 | 19 |

(2) Annual adjustment up to 100% of receipts | |||||

B_{0} (initial debt level)
| 5.18 | 7.03 | 6.55 | 1.05 | 36.07 |

\( {\widehat{\mathrm{B}}}_1 \) (adjusted debt level) | 8.17 | 9.37 | 6.18 | 1.80 | 36.07 |

\( {\widehat{\mathrm{B}}}_1 \)/rev (adjusted debt in % of receipts) | 100.00% | 87.28% | 0.37 | 0.00% | 211.41% |

i_{0} (observed initial interest rate)
| 2.46% | 2.51% | 0.01 | 0.00% | 6.44% |

\( {\widehat{\mathrm{i}}}_0 \) (estimated initial interest rate based on B_{0})
| 2.46% | 2.41% | 0.01 | 0.09% | 5.28% |

\( {\widehat{\mathrm{i}}}_1 \) (estimated interest rate at \( {\widehat{\mathrm{B}}}^{\ast } \)) | 2.60% | 2.54% | 0.01 | 0.13% | 5.96% |

\( \widehat{\uppi} \) (estimated profit [in % of total receipts]) | 0.13% | 1.11% | 1.55 | 0.00% | 6.98% |

Profitable years per canton | 11.50 | 9.69 | 6.22 | 0 | 18 |

(3) 2 years moving average adjustment up to 100% of receipts | |||||

B_{0} (initial debt level)
| 5.16 | 7.02 | 6.60 | 1.05 | 36.07 |

\( {\widehat{\mathrm{B}}}_1 \) (adjusted debt level) | 7.94 | 9.39 | 6.04 | 1.93 | 35.54 |

\( {\widehat{\mathrm{B}}}_1 \)/rev (adjusted debt in % of receipts) | 94.63% | 86.26% | 0.33 | 0.00% | 204.77% |

i_{0} (observed initial interest rate)
| 2.40% | 2.42% | 0.01 | 0.00% | 5.86% |

\( {\widehat{\mathrm{i}}}_0 \) (estimated initial interest rate based on B_{0})
| 2.39% | 2.33% | 0.01 | 0.09% | 5.28% |

\( {\widehat{\mathrm{i}}}_1 \) (estimated interest rate at \( {\widehat{\mathrm{B}}}^{\ast } \)) | 2.52% | 2.46% | 0.01 | 0.13% | 5.99% |

\( \widehat{\uppi} \) (estimated profit [in % of total receipts]) | 0.23% | 0.77% | 1.37 | − 6.61% | 6.06% |

Profitable years per canton | 12.00 | 11.15 | 5.15 | 1 | 18 |