Sustainability and Optimality of Public Debt

Authors: Carlberg, Michael, Hansen, Arne

  • Numerous illustrations and examples help the reader to understand and proceed quickly
  • The investigation covers the closed economy, the small open economy and a two-country setting
  • The analysis includes the Solow model, the overlapping generations model and the infinite horizon model
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About this book

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.

About the authors

Michael Carlberg is Professor at Helmut Schmidt University in Hamburg, Germany. His research is on Macroeconomics, Monetary Economics, and International Economics.

Arne Hansen is research assistant at Helmut Schmidt University in Hamburg, Germany. His research is on Economic Growth, Public Debt, and International Economics.

Table of contents (11 chapters)

Buy this book

eBook $99.00
price for USA (gross)
  • ISBN 978-3-642-32967-8
  • Digitally watermarked, DRM-free
  • Included format: PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $129.00
price for USA
  • ISBN 978-3-642-32966-1
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Softcover $129.00
price for USA
  • ISBN 978-3-642-44630-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Sustainability and Optimality of Public Debt
Authors
Copyright
2013
Publisher
Physica-Verlag Heidelberg
Copyright Holder
Springer-Verlag Berlin Heidelberg
eBook ISBN
978-3-642-32967-8
DOI
10.1007/978-3-642-32967-8
Hardcover ISBN
978-3-642-32966-1
Softcover ISBN
978-3-642-44630-6
Edition Number
2
Number of Pages
XII, 212
Additional Information
Originally published under: Carlberg, M. within the series: Contributions to Economics
Topics