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Sustainability and Optimality of Public Debt

  • Michael Carlberg

Part of the Contributions to Economics book series (CE)

Table of contents

  1. Front Matter
    Pages I-1
  2. Introduction

    1. Michael Carlberg
      Pages 3-4
  3. Brief Survey of the Literature

    1. Michael Carlberg
      Pages 5-7
  4. Closed Economy

    1. Front Matter
      Pages 9-9
    2. Solow Model

      1. Michael Carlberg
        Pages 11-37
      2. Michael Carlberg
        Pages 38-59
      3. Michael Carlberg
        Pages 60-69
      4. Michael Carlberg
        Pages 70-76
    3. Overlapping Generations

      1. Michael Carlberg
        Pages 77-84
      2. Michael Carlberg
        Pages 85-91
      3. Michael Carlberg
        Pages 92-99
      4. Michael Carlberg
        Pages 100-103
    4. Infinite Horizon

      1. Michael Carlberg
        Pages 104-116
      2. Michael Carlberg
        Pages 117-120
      3. Michael Carlberg
        Pages 121-130
  5. Open Economy

    1. Front Matter
      Pages 131-131
    2. Solow Model

      1. Michael Carlberg
        Pages 133-142
      2. Michael Carlberg
        Pages 143-150
    3. Overlapping Generations

      1. Michael Carlberg
        Pages 151-156
      2. Michael Carlberg
        Pages 157-160
  6. Two Countries (Solow Model)

    1. Front Matter
      Pages 161-161
    2. Michael Carlberg
      Pages 163-174
    3. Michael Carlberg
      Pages 175-178
    4. Michael Carlberg
      Pages 179-185
    5. Michael Carlberg
      Pages 187-196
    6. Michael Carlberg
      Pages 197-198
  7. Back Matter
    Pages 199-217

About this book

Introduction

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.

Keywords

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

Authors and affiliations

  • Michael Carlberg
    • 1
  1. 1.Department of EconomicsFederal UniversityHamburgGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-46965-7
  • Copyright Information Physica-Verlag Heidelberg 1995
  • Publisher Name Physica-Verlag HD
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-7908-0834-6
  • Online ISBN 978-3-642-46965-7
  • Series Print ISSN 1431-1933
  • Buy this book on publisher's site
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