, together with drastic budgetary cuts aiming at curbing public debt to maintain sustainability. Finally, the paper tries to …

on debt dynamics for the eight new member states from Central and Eastern Europe. We find that the nominal Maastricht … achieve the fiscal criteria. Our results suggest all countries would find it harder to restrain debt growth within the euro …, but that the magnitude of this effect varies substantially across countries, as do the debt dynamics outside the euro. If …

The aim of this Paper is to test for the extent of incompleteness in the market for US Government debt. We show that … when a government pursues an optimal tax policy and issues a full set of contingent claims, the value of debt has the same …. Examining US data, however, reveals that debt is substantially more persistent than other variables and increases in response to …

policy-makers. This international coalition reduces the cost of running a budget deficit, and thus enhances the adverse …

government purchases and transfers, and we allow for a reduction in both distortionary taxes and government debt relative to the …

, using a slightly generalized version of the Yaari-Blanchard model of consumer behaviour. Debt neutrality does not prevail …

significantly different from zero. Following the findings in Bohn (1998), we also experiment with a model that includes debt and the … from the budget constraint makes a difference after 1980, when the response of fiscal variables to the level of the debt …

policy multiplier. The effect of fiscal policy on output is different depending on the different debt dynamics, the different …

We examine debt-sensitive majority rules. According to such a rule, the higher a planned public debt, the higher the … parliamentary majority required to approve it. In a two-period model we compare debt-sensitive majority rules with the simple … Condorcet winners under debt-sensitive majority rules and derive their properties. We find that equilibrium debt-levels are …