Hiebert, Paul; Pérez, Javier J.; Rostagno, Massimo - In: Economic Modelling 26 (2009) 2, pp. 464-472
This paper addresses the basic tradeoff between the stabilisation properties of budgets and the sustainability of long run fiscal positions. The modeling framework consists of a simple non-monetary endowment economy with overlapping generations, extended to account for stochastic endowments and...