Public Debt in an Endogenous Growth Model of Perpetual Youth
This paper combines into a single consistent framework the Blanchard-Yaari model of perpetual youth and an endogenous growth model of human capital accumulation. In the steady-state equilibrium of the modelled closed economy, consumption, production, human capital and physical capital all grow at an uniform rate. This rate depends, apart from a vector of parameters, only on the amount of time that decentrally optimizing private households of heterogeneous age allocate to education and training. Contrary to the exogenous growth models of overlapping generations, there is no scope for public debt policy to Pareto-improve welfare in such a model. An increase in public debt reduces the steady-state growth rate of the economy and hence necessarily hurts future generations.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 57 (2000)
Issue (Month): 2 (March)
|Contact details of provider:|| Web page: http://www.mohr.de/fa |
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
When requesting a correction, please mention this item's handle: RePEc:mhr:finarc:urn:sici:0015-2218(200103)57:2_197:pdiaeg_2.0.tx_2-k. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert)
If references are entirely missing, you can add them using this form.