Ko, Jun-Hyung; Morita, Hiroshi - In: Economic Modelling 46 (2015) C, pp. 364-375
income growth significantly decreases the debt–GDP ratio. Second, however, the contributions of these two shocks are minor in … explaining historical variances of the debt–GDP ratio in both regimes. Third, forecast simulations reveal that the debt–GDP ratio … a Ricardian fiscal stance can keep the debt–GDP ratio sustainable. …