TY  - BOOK
AU  - Carlberg,Michael
AU  - Hansen,Arne
ED  - SpringerLink (Online service)
TI  - Sustainability and Optimality of Public Debt
SN  - 9783642329678
AV  - HJ9-9940 
U1  - 336 23
PY  - 2013///
CY  - Berlin, Heidelberg
PB  - Springer Berlin Heidelberg, Imprint: Physica
KW  - Macroeconomics
KW  - International economics
KW  - Public finance
KW  - Economic growth
KW  - Economics
KW  - Public Economics
KW  - Economic Growth
KW  - International Economics
KW  - Macroeconomics/Monetary Economics//Financial Economics
N1  - Introduction -- A Brief Survey of the Literature -- The Closed Economy: The Solow Model -- Overlapping Generations -- Infinite Horizon -- The Small Open Economy: The Solow Model -- Overlapping Generations -- Two Countries: The Solow Model -- Synopsis -- Conclusion -- Result
N2  - This book studies the sustainability and optimality of public debt under different scenarios: the closed economy, the small open economy, and a two-country setting. Sustainability refers to the existence and the stability of the long-run equilibrium. Optimality relates to the path of public debt that maximizes discounted utility. The analysis is conducted within the framework of the Solow model, the overlapping generations model and the infinite horizon model. The government can follow different strategies, it either fixes the deficit ratio or the tax rate. As a result, a fixed deficit ratio generally can be sustained. By contrast, a fixed tax rate generally cannot be sustained. Depending on the chosen fiscal strategy, there exists either an optimal deficit ratio or an optimal tax rate that maximizes the sum of consumption and government purchases per capita
UR  - http://dx.doi.org/10.1007/978-3-642-32967-8
ER  -