منابع مشابه
Debt in the U.S. Economy
In 2011, the publicly held debt-to-GDP ratio in the United States reached 68% and is expected to continue rising. Many proposals to curb the government de cit and the resulting debt are being discussed. In this paper, we use the standard neoclassical growth model to examine the future path of output, budget de cits, and debt in the U.S. economy under di¤erent tax policies. While this framework ...
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This paper analyses whether sovereign default episodes can be seen as contingencies of optimal international lending contracts. The model considers a small open economy with capital accumulation and without commitment to repay debt. Taking first order approximations of Bellman equations, I derive analytical expressions for the equilibrium level of debt and the optimal debt contract. In this env...
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Countries need short, medium, and long-term investment plans for production growth and development. Different sources for these investments can be supplied through retained profit, stock issuance, and bank loans, or a combination them. Institutions and firms need huge amount of capitals for their survival, production, and also development of activities. In addition, these institutions and firms...
متن کاملPolitical Economy of Debt and Growth
We present a theory of endogenous fiscal policy and growth. Fiscal policy — debt, income tax, spending on local public goods and public investment — is determined through legislative bargaining. Economic growth depends directly on public investment, private investment in human capital and, via learning-by-doing, labor supply. The model predicts that the economy converges to a balanced growth pa...
متن کاملPolitical Economy of Debt and Growth Appendix
In this Appendix we present additional results for our paper “Political Economy of Debt and Growth.”In Section 1 we (1) offer a discussion on the relationship to Battaglini and Coate [2008] framework; (2) discuss the relevance of our results for open economies; and (3) elaborate on how the model can be adopted for empirical analysis at high and medium frequencies. In Section 2 we present deriva...
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ژورنال
عنوان ژورنال: The Economic Journal
سال: 1980
ISSN: 0013-0133
DOI: 10.2307/2231681