Arai, Real; Nakazawa, Masahiko - In: Applied Economics Letters 21 (2014) 17, pp. 1194-1197
We investigate the size of primary balance that can be sustained and the change in public debt and physical capital under transition dynamics in the Japanese economy. For our investigation, we construct a simple overlapping generations model. We find that a large primary surplus, 13.8-18.7% of...