Public debt in an OLG model with imperfect competition
AbstractFiscal policy is needed to avoid dynamic inefficiency and maintain full employment in a modified Diamond OLG model with imperfect competition. A distributionally neutral tax scheme can maintain full employment in the face of variations in .household confidence.. No variations in taxes will be needed if households correctly anticipate future taxes: the tax policy functions as an insurance scheme. JEL Categories: E62, E22
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Bibliographic InfoPaper provided by University of Massachusetts Amherst, Department of Economics in its series UMASS Amherst Economics Working Papers with number 2011-25.
Date of creation: Oct 2011
Date of revision:
Public debt; Keynesian OLG model; dynamic effeciency; confidence.;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
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- Ekkehart Schlicht, 2006.
"Public Debt As Private Wealth: Some Equilibrium Considerations,"
Wiley Blackwell, vol. 57(4), pages 494-520, November.
- Schlicht, Ekkehart, 2008.
"Public Debt as Private Wealth,"
Discussion Papers in Economics
2143, University of Munich, Department of Economics.
- Soon Ryoo & Peter Skott, 2013.
"Public debt and full employment in a stock-flow consistent model of a corporate economy,"
Journal of Post Keynesian Economics,
M.E. Sharpe, Inc., vol. 35(4), pages 511-528, July.
- Soon Ryoo & Peter Skott, 2011. "Public debt and full employment in a stock-flow consistent model of a corporate economy," UMASS Amherst Economics Working Papers 2011-26, University of Massachusetts Amherst, Department of Economics.
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