Hürtgen, Patrick; Rühmkorf, Ronald - 2013 - This version: August 7, 2013
government operates close to its scal limit, i.e. the maximum capacity of a country to repay its debt. The presence of the … possible sovereign default leads to dynamics of sovereign debt which cause taxes to rise and increase the dispersion of … resulting tax levels. In line with data for industrialized countries household saving increases at high debt-to-GDP levels and …
