Greiner, Alfred - In: Journal of Institutional and Theoretical Economics (JITE) 164 (2008) 3, pp. 460-476
This paper presents an endogenous growth model with public capital and public debt. The primary-surplus-to-GDP ratio is set such that it is a positive function of the debt ratio, which is a necessary condition for the intertemporal budget constraint of the government. The paper studies growth...