Government Debt and Capital Accumulation in the Blanchard-Cass-Yaari OLG Model

It is shown that although government debt in principle has an ambiguous effect on the steady state capital stock in an OLG model of the Blanchard-Cass-Yaari variety, once stability of the steady state equilibrium is imposed there is an unambiguous negative relation between the level of government debt and the capital stock.

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Authors:	Rasmussen, Bo Sandemann
Institutions:	School of Economics and Management, University of Aarhus
Subject:	OLG model \| government debt \| stability \| capital accumulation

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Extent:	application/pdf
Series:	Economics Working Papers.
Type of publication:	Book / Working Paper
Notes:	1 pages long
Classification:	E13 - Neoclassical ; H63 - Debt; Debt Management
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005439999