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Sur les interactions entre politiques de dette publique et de transfert

Listed author(s):
  • Marie Bessec

    (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine)

  • Audrey Desbonnet

    (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine)

  • Sumudu Kankanamge

    (GREMAQ - Groupe de recherche en économie mathématique et quantitative - UT1 - Université Toulouse 1 Capitole - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique)

  • Thomas Weitzenblum

    (EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé)

In this paper, we investigate the interactions between public debt and transfer policies in a framework based on Floden [2001], 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 [2001] is not stable with respect to these short term incentives. Simulations reveal that our equilibrium and Floden [2001]’s one considerably differ in quantitative terms.

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File URL: https://hal.archives-ouvertes.fr/hal-01515625/document
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Paper provided by HAL in its series Post-Print with number hal-01515625.

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Date of creation: 2012
Publication status: Published in Revue d'économie politique, 2012, 122 (6)
Handle: RePEc:hal:journl:hal-01515625
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01515625
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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