Using detailed micro data, we document that households often use "stimulus" checks to pay down debt, especially those … otherwise standard incomplete markets model. Because interest rates rise with debt, borrowers have increasingly larger … incentives to use an additional dollar to reduce debt service payments rather than consume. Using our calibrated model, we then …

namely the sharing of the national public debt. Extending Dr?ze's distributive neutrality condition, we use the generational … accounting technique and propose a dynamic debt-sharing criterion which takes into account both the true debt future generations …, and in the absence of initial regional debt. An application of our criterion to the Belgian case offers striking results. …