02633nam 2200565 a 450 991043806550332120200520144314.01-283-93522-83-642-32967-510.1007/978-3-642-32967-8(CKB)2670000000317368(EBL)1082625(OCoLC)823388560(SSID)ssj0000879792(PQKBManifestationID)11488000(PQKBTitleCode)TC0000879792(PQKBWorkID)10872034(PQKB)10887926(DE-He213)978-3-642-32967-8(MiAaPQ)EBC1082625(PPN)168323206(EXLCZ)99267000000031736820130109d2013 uy 0engur|n|---|||||txtccrSustainability and optimality of public debt /Michael Carlberg, Arne Hansen2nd ed.Heidelberg Physica-Verlag20131 online resource (219 p.)Originally published under: Carlberg, M. within the series: Contributions to economics.3-642-44630-2 3-642-32966-7 Includes bibliographical references.pt. I. The closed economy -- pt. II. The small open economy -- pt. III. Two countries.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.Debts, PublicMathematical modelsDebts, PublicMathematical models.336.3435Carlberg Michael254322Hansen Arne1762288MiAaPQMiAaPQMiAaPQBOOK9910438065503321Sustainability and optimality of public debt4202110UNINA