Braun, R. Anton; Ikeda, Daisuke; Joines, Douglas H. - Federal Reserve Bank of San Francisco - 2006
policy, in-
cluding government purchases, tax rates, the public debt, and the size of the public pension
system.
5Changes in … government purchases, public
pension benefits, interest on the public debt, and lump-sum transfers. Gov-
ernment purchases are … set exogenously to Gt. Aggregate pension benefits are
given by
Bt =
summationdisplay
j=Jr
µj,tbj,t. (17)
The public debt …