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The effect of the behavior of an average consumer on the public debt dynamics

Author

Listed:
  • De Luca, Roberto
  • Di Mauro, Marco
  • Falzarano, Angelo
  • Naddeo, Adele

Abstract

An important issue within the present economic crisis is understanding the dynamics of the public debt of a given country, and how the behavior of average consumers and tax payers in that country affects it. Starting from a model of the average consumer behavior introduced earlier by the authors, we propose a simple model to quantitatively address this issue. The model is then studied and analytically solved under some reasonable simplifying assumptions. In this way we obtain a condition under which the public debt steadily decreases.

Suggested Citation

  • De Luca, Roberto & Di Mauro, Marco & Falzarano, Angelo & Naddeo, Adele, 2017. "The effect of the behavior of an average consumer on the public debt dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 482(C), pages 357-361.
    • Handle: RePEc:eee:phsmap:v:482:y:2017:i:c:p:357-361
    DOI: 10.1016/j.physa.2017.04.099
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    References listed on IDEAS

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