This paper lays out a simple model for the purpose of bringing together the various strands of the analysis of fiscal policy in an optimizing , competitive equilibrium model. The discussion centers on the critic al assumptions lying behind the Ricardian equivalence proposition, th e role of the...

This article synthesizes two strands of current macroeconomic research in fiscal policy by allowing for finite lifetimes in an intertemporal substitution model. Among other things, the article establishes that in such a model, public debt issuance is contractionary with respect to current...