Hansson, Ingemar; Stuart, Charles - In: Economic Inquiry 25 (1987) 3, pp. 479-96
The authors analyze the welfare consequences of deficit finance in a gene ral equilibrium model fit to the U.S. economy. Current spending may b e financed with current and/or future distortionary taxes. The econom y is open to international capital flows. The welfare costs of financ ing marginal...