Fair, Ray C. - Cowles Foundation for Research in Economics, Yale University - 2011
payments (or tax expenditures) needed to stabilize the U.S. government debt/GDP ratio. It takes into account endogenous … an ever increasing debt/GDP ratio. Then transfer payments are decreased by an amount sufficient to stabilize the long …-run debt/GDP ratio. The results show that transfer payments need to be decreased by 2 percent of GDP from the base run, which …