Wenzel, Heinz-Dieter; Wrede, Matthias - In: Journal of Economics and Statistics (Jahrbuecher fuer … 220 (2000) 1, pp. 95-107
In this paper a neoclassical growth model is used to analyze public debt in a growing economy with two levels of government. The main focus is on the existence and the stability of long run cquilibria in a growing federal state. It is shown that the equilibrium in a federation with two levels of...