Debt Policy in a Competitive Two-Sector Overlapping Generations Model

In this paper debt policy in a two-period, two-sector overlapping generations model with Leontief technologies has been analysed. It has been found that debt, issued to transfer resources to the initially old, could be welfare improving in the new steady state for an economy which satisfies the usual conditions for dynamic efficiency viz. the rate of interest is at least as great as the population growth rate. [Working paper No. 137]

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Year of publication:	2010-09
Authors:	Sen, Partha
Institutions:	eSocialSciences
Subject:	Government Debt \| Overlapping Generations \| Two-Sector Models \| Dynamic Efficiency

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Institutional Papers
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008676972