Public debt in an OLG model with imperfect competition : long-run effects of austerity programs and changes in the growth rate

by Peter Skott and Soon Ryoo

We show that (i) dynamic inefficiency may be empirically relevant in a modified Diamond model with imperfect competition, (ii) if fiscal policy is used to avoid inefficiency and maintain an optimal capital intensity, the required debt ratio will be inversely related to the growth rate, and (iii) austerity policies - reductions in government consumption and entitlement programs for the old generation - raise the required debt ratio.

MoreLess

Year of publication:	2013
Authors:	Skott, Peter ; Ryoo, Soon
Publisher:	Amherst, Mass. : Univ. of Massachusetts, Dep. of Economics
Subject:	Public debt \| dynamic efficiency \| growth effects \| austerity \| Öffentliche Schulden \| Haushaltskonsolidierung \| Fiscal consolidation \| Overlapping Generations \| Overlapping generations \| Wirtschaftswachstum \| Economic growth \| Theorie \| Theory \| Öffentliche Ausgaben \| Public expenditure \| Endogenes Wachstumsmodell \| Endogenous growth model

freely available

Full text |

More access options

www.umass.edu

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	Online-Ressource (18 S.)
Series:	Economics Department working paper series. - Amherst, Mass. : [Verlag nicht ermittelbar], ZDB-ID 2407593-0. - Vol. 2013-10
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/105768 [Handle]
Classification:	E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; E22 - Capital; Investment (including Inventories); Capacity
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10010193872