Determination of optimal public debt ceiling for Kenya using stochastic control

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dc.contributor.authorKithinji, Millicent
dc.date.accessioned2018-11-01T10:10:49Z
dc.date.available2018-11-01T10:10:49Z
dc.date.issued2018
dc.descriptionA Dissertation submitted in partial fulfillment of the requirements for the Master of Science in Mathematical Finance (MSc.MF) at Strathmore Universityen_US
dc.description.abstractPublic debt is a key economic variable. It is the totality of public and publicly guaranteed debt owed by any level of government to either citizens or foreigners or both. Due to recent debt crises in developed countries such as Portugal, Italy, Ireland, Greece and Spain, debt control has become a key important fiscal policy of every government. In this study, we applied a formula proposed by (Cadenillas and Aguilar, 2015) to find out the optimal public debt ceiling for Kenya. We made modification to subjective variables in the explicit formula and used the formula to find the optimal public debt ceiling for Kenya. We illustrate that it is prudent for that government to use a fiscal policy that maintains the debt ratio under an optimal debt ceiling.en_US
dc.identifier.urihttp://hdl.handle.net/11071/6056
dc.language.isoenen_US
dc.publisherStrathmore Universityen_US
dc.subjectStochastic Optimal Controlen_US
dc.subjectPublic debten_US
dc.subjectDebt ceilingen_US
dc.subjectHamilton- Jacobi-Bellman equationen_US
dc.subjectValue functionen_US
dc.subjectControl processen_US
dc.titleDetermination of optimal public debt ceiling for Kenya using stochastic controlen_US
dc.typeThesisen_US
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