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Public Debt and Redistribution

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  • Marini, Giancarlo
  • Scaramozzino, Pasquale

Abstract

This paper investigates the distributional implications of debt policy in an overlapping generations model with heterogeneous asset holders. The issue of new debt to be repaid by future taxation redistributes resources amongst agents, even for small degrees of wealth inequality, via its impact on the equilibrium conditions in capital markets. Copyright 1996 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Marini, Giancarlo & Scaramozzino, Pasquale, 1996. "Public Debt and Redistribution," The Manchester School of Economic & Social Studies, University of Manchester, vol. 64(3), pages 269-280, September.
  • Handle: RePEc:bla:manch2:v:64:y:1996:i:3:p:269-80
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