Crettez, Bertrand; Michel, Philippe; Wigniolle, Bertrand - In: Journal of Public Economic Theory 4 (2002) 4, pp. 499-521
In this paper, we study the intertemporal equilibria of an infinite-lived representative agent model with public debt. We show that for a given path of government expenditures, there generally exists a continuum of equilibria depending on various debt policies. These equilibria are characterized...