Barro's model is an AK model, and there cannot be dynamic inefficiency since the social yield of the capital is higher than the growth rate. But it may be that the private yield and thus the interest rate are lower than the growth rate. One can thus have a Ponzi game and the government can allow...

Whether public debt is internal or external, the burden is equivalent in the OLG model. This equivalence holds, regardless of whether the definition of burden reflects Modigliani's view or Lerner's perspective. It results from the assumption of perfect substitutability between public debt and...

The potential consequences of the development of domestic debt markets in Low-Income Countries (LICs) are extremely relevant for policy-makers and international financial institutions, especially in light of a scaling-up of public investment in infrastructures. This paper introduces a new...