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We derive the quantitative implications of reducing sustained budget deficits (labeled fiscal stabilizations) in the context of a general equilibrium model of innovation-led growth. In the model, innovation comes from entrant firms creating new products and incumbent firms improving own existing...
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This article surveys the literature on sovereign debt sustainability from its origins in the mid-1980s to the present, focusing on four debates. First, the shift from an "accounting based" view of debt sustainability, evaluated using government borrowing rates, to a "model based" view which uses...
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nor to practically increase Italian government debt, but to practically cause a mere reduction in taxation and thence in … associated with them, would have (i) stimulated expenditure more than a taxation rebate to the said firms and (ii) facilitated … taxation credit certificates endowed with a further reduction in taxation conditional on their use for consumption, termed …
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