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Welfare-Improving Debt Policy under Monopolistic Competition

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Author Info
Partha Sen

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Abstract

In this paper a model of monopolistic competition is used to show that debt-policy could be welfare-improving for all generations. Debt crowds out capital but that is welfare-improving because capital accumulation is immiserizing.

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Publisher Info
Paper provided by Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics in its series EPRU Working Paper Series with number 94-07.

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Handle: RePEc:kud:epruwp:94-07

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This page was last updated on 2008-7-16.


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