This paper quantifies the costs of a permanent increase in debt to GDP. We employ a deterministic, overlapping generations model with two assets and no risk of default. The two assets are public debt and private (productive) capital. We assume that the return on private capital equals the...

The Greek government has provided substantial support to households to cope with the high cost of living in 2022-2023. This paper leverages on the rich micro-level data on household consumption in the Household Budget Survey to study the distributional impact of price increases. Policy...