The Solow Model of a Two-Country World
- 133 Downloads
In this chapter we will explore the cross country effects of public debt. The basic assumptions are that the production structure is again of AK type and that households save a constant fraction of their disposable income. The basic model, without public debt, is presented in Carlberg (1997).
KeywordsPublic Debt Budget Deficit Capital Growth Foreign Asset Foreign Debt
Unable to display preview. Download preview PDF.