Sustainability and Optimality of Public Debt

1. Front Matter

   Pages I-1

   PDF

2. Introduction

   1. Introduction

      • Michael Carlberg

      Pages 3-4

3. Brief Survey of the Literature

   1. Brief Survey of the Literature

      • Michael Carlberg

      Pages 5-7

4. Closed Economy

   1. Front Matter

      Pages 9-9

      PDF

   2. Solow Model

      1. Fixed Deficit Ratio

         • Michael Carlberg

         Pages 11-37

      2. Fixed Tax Rate

         • Michael Carlberg

         Pages 38-59

      3. Fixed Deficit Per Head

         • Michael Carlberg

         Pages 60-69

      4. Fixed Tax Per Head

         • Michael Carlberg

         Pages 70-76

   3. Overlapping Generations

      1. Fixed Deficit Ratio

         • Michael Carlberg

         Pages 77-84

      2. Fixed Tax Rate

         • Michael Carlberg

         Pages 85-91

      3. Fixed Deficit Per Head

         • Michael Carlberg

         Pages 92-99

      4. Fixed Tax Per Head

         • Michael Carlberg

         Pages 100-103

   4. Infinite Horizon

      1. Fixed Deficit Ratio

         • Michael Carlberg

         Pages 104-116

      2. Fixed Tax Rate

         • Michael Carlberg

         Pages 117-120

      3. Optimal Deficit Ratio

         • Michael Carlberg

         Pages 121-130

5. Open Economy

   1. Front Matter

      Pages 131-131

      PDF

   2. Solow Model

      1. Fixed Deficit Per Head

         • Michael Carlberg

         Pages 133-142

      2. Fixed Tax Per Head

         • Michael Carlberg

         Pages 143-150

   3. Overlapping Generations

      1. Fixed Deficit Per Head

         • Michael Carlberg

         Pages 151-156

      2. Fixed Tax Per Head

         • Michael Carlberg

         Pages 157-160

Public debt seems to be one of the great issues of the nineties. The United States have turned from the largest creditor of the world to the largest debtor, due to dramatic budget deficits. The European Union tries to build dams against the flood, see the treaty of Maastricht. And in Germany, public debt tends to explo­ de, doubling within a few years. The reason for this is the immense cost of Ger­ man unification. I had many helpful talks with my colleague Michael Schmid (now at Bam­ berg). In addition, Michael Brauninger and Philipp Lichtenauer carefully discus­ sed with me all parts of the manuscript. Last but not least, Doris Ehrich typed the manuscript as excellently as ever. I would like to thank all of them. Contents INTRODUCTION 3 5 BRIEF SURVEY OF THE LITERATURE PART I. CLOSED ECONOMY 9 CHAPTER I. SOLOW MODEL 11 1. Fixed Deficit Ratio 11 1. 1. Simple Model 11 1. 2. Short-Run Equilibrium 12 1. 3. Long-Run Equilibrium 14 1. 4. Optimal Deficit Ratio 18 1. 5. Optimal Saving Ratio 20 1. 6. Stability 21 1. 7. Shocks 23 1. 8. Budget Surplus 29 1. 9. Numerical Example 32 1. 10. Summary 37 2. Fixed Tax Rate 38 2. 1. Simple Model 38 2. 2. Short-Run Equilibrium 39 2. 3. Long-Run Equilibrium 40 2. 4. Stability 45 2. 5. Shocks 48 2. 6. Optimal Tax Rate 56 2. 7. Optimal Saving Ratio 57 2. 8. Numerical Example 58 2. 9.

• Außenwirtschaft
• Economic Growth
• International Economics
• Public Dept
• Staatsverschuldung
• Verschuldung
• Wirtschaftswachstum
• growth
• growth model

• Department of Economics, Federal University, Hamburg, Germany

  Michael Carlberg

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