This paper analyzes the effect of an increase in government spending on the welfare of different generations in a dynamic general equilibrium model. The paper shows that the intergenerational incidence of government spending on a public good is determined not only by the welfare effects due to...

In the neoclassical model of public debt, consumers have finite life spans and budget deficits shift taxes to future generations, reducing savings, raising the interest rate, and reducing the capital stock. In such a setting, budget deficits decrease welfare in the long run. This result also...

An inter-temporal general equilibrium econometric model is developed for the Australian economy and used to simulate a trade policy. The model treats the prices of non-traded goods as endogenous and takes account of the inter-temporal optimality conditions implicit in the determination of...

This article provides an empirical analysis of the impact of uncertain international prices on Australia's production sector and international trade. We model the movement of traded goods prices via a generalised autoregressive conditional heteroskedasticity model and embed this within an...