Sur les interactions entre politiques de dette publique et de transfert
AbstractIn this paper, we investigate the interactions between public debt and transfer policies in a framework based on Floden , that we extend to allow for transitional dynamics between steady states. First, we show that, starting from a high level of public debt, it is possible to implement a policy that reduces public debt without generating welfare losses, as long as it is associated with transitory transfers adjustments. Secondly, we define and compute an equilibrium that takes into consideration the government’s incentive to implement unexpected adjustments in both public debt and transfers. We show that the long run equilibrium over public debt and transfers in Floden  is not stable with respect to these short term incentives. Simulations reveal that our equilibrium and Floden ’s one considerably differ in quantitative terms.
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Bibliographic InfoPaper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/11486.
Date of creation: 2012
Date of revision:
Publication status: Published in Revue d'économie politique, 2012, Vol. 122, no. 6. pp. 903-920.Length: 17 pages
Fiscal policy; public debt; transfers; Fiscalité; dette publique; transferts; transition;
Other versions of this item:
- Marie Bessec & Audrey Desbonnet & Sumudu Kankanamge & Thomas Weitzenblum, 2012. "Sur les interactions entre politiques de dette publique et de transfert," Revue d'économie politique, Dalloz, vol. 122(6), pages 903-920.
- E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
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