%0 Journal Article %1 199203 %A Velde, Francois R. %A Weir, David R. %D 1992 %I Economic History Association %J The Journal of Economic History %K Finance France HIST3718 Military_Machines %N 1 %P 1--39 %T The Financial Market and Government Debt Policy in France, 1746-1793 %U http://links.jstor.org/sici?sici=0022-0507%28199203%2952%3A1%3C1%3ATFMAGD%3E2.0.CO%3B2-G %V 52 %X This article offers a new quantitative history of the market for government debt in France before the Revolution. The monarchy was a persistent default risk because of institutional obstacles to raising taxes. Default followed observable rules in targeting specific assets. The financial market reflected both facts: interest rates were high on the safest assets and ranged higher on the most likely default targets. The cost of all forms of new borrowing became substantially higher than the yields on old debt, resulting in increasing government reliance on expensive life annuities.

@article{199203, abstract = {This article offers a new quantitative history of the market for government debt in France before the Revolution. The monarchy was a persistent default risk because of institutional obstacles to raising taxes. Default followed observable rules in targeting specific assets. The financial market reflected both facts: interest rates were high on the safest assets and ranged higher on the most likely default targets. The cost of all forms of new borrowing became substantially higher than the yields on old debt, resulting in increasing government reliance on expensive life annuities.}, added-at = {2007-07-13T16:22:51.000+0200}, author = {Velde, Francois R. and Weir, David R.}, biburl = {https://www.bibsonomy.org/bibtex/20b28013f4f60ff253efa5d4c83444251/klinch}, copyright = {Copyright 1992 Economic History Association}, interhash = {d7496c78839a4ff484c06465509cb7ff}, intrahash = {0b28013f4f60ff253efa5d4c83444251}, issn = {0022-0507}, journal = {The Journal of Economic History}, jstor_articletype = {Full Length Article}, jstor_date = {199203}, jstor_formatteddate = {Mar., 1992}, keywords = {Finance France HIST3718 Military_Machines}, month = mar, number = 1, pages = {1--39}, publisher = {Economic History Association}, timestamp = {2007-08-10T12:24:30.000+0200}, title = {The Financial Market and Government Debt Policy in France, 1746-1793}, url = {http://links.jstor.org/sici?sici=0022-0507%28199203%2952%3A1%3C1%3ATFMAGD%3E2.0.CO%3B2-G}, volume = 52, year = 1992 }