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Dette publique, croissance et bien-être : une perspective de long terme

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  • Alexandru Minea

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Patrick Villieu

    (LEO - Laboratoire d'économie d'Orleans [2008-2011] - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique)

Abstract

We develop a simple theoretical growth model to deal with long term public debt, in accordance to stylized facts. We study the effect of a permanent increase in public debt on economic growth, and show that these effects, always negative (or neutral), depend in their magnitude on the adjustment variable to the increase of the debt burden in the Government constraint. Finally, we show that, contrary to economic growth effects, the welfare effects of a permanent increase in the debt burden may be positive. We thus emphasize the existence of an optimal public debt to GDP ratio.

Suggested Citation

  • Alexandru Minea & Patrick Villieu, 2011. "Dette publique, croissance et bien-être : une perspective de long terme," Working Papers halshs-00829647, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00829647
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00829647
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    References listed on IDEAS

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    1. Alexandru Minea & Patrick Villieu, 2009. "Investissement public et effets non linéaires des déficits budgétaires," Recherches économiques de Louvain, De Boeck Université, vol. 75(3), pages 281-311.
    2. repec:hal:wpspec:info:hdl:2441/1783 is not listed on IDEAS
    3. Catherine Mathieu & Henri Sterdyniak, 2003. "Réformer le pacte de stabilité : l'état du débat," Revue de l'OFCE, Presses de Sciences-Po, vol. 84(1), pages 145-179.
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    5. Franco Modigliani & Jean Paul Fitoussi & Beniamino Moro & Denis Snower & Robert Solo & Alfred Steinherr & Paolo Sylos Labini, 1999. "An Economist’s Manifesto on Unemployment in the European Union," Journal of Income Distribution, Ad libros publications inc., vol. 8(2), pages 1-1, December.
    6. Carmen M. Reinhart & Kenneth S. Rogoff, 2014. "A Decade of Debt," Central Banking, Analysis, and Economic Policies Book Series, in: Miguel Fuentes D. & Claudio E. Raddatz & Carmen M. Reinhart (ed.),Capital Mobility and Monetary Policy, edition 1, volume 18, chapter 4, pages 97-135, Central Bank of Chile.
    7. Alberto Alesina & Roberto Perotti, 1997. "Fiscal Adjustments in OECD Countries: Composition and Macroeconomic Effects," IMF Staff Papers, Palgrave Macmillan, vol. 44(2), pages 210-248, June.
    8. Buiter, Willem H, 2001. "Notes on 'A Code for Fiscal Stability.'," Oxford Economic Papers, Oxford University Press, vol. 53(1), pages 1-19, January.
    9. Groneck, Max, 2010. "A golden rule of public finance or a fixed deficit regime?: Growth and welfare effects of budget rules," Economic Modelling, Elsevier, vol. 27(2), pages 523-534, March.
    10. Fabrizio Balassone & Daniele Franco, 2000. "Public investment, the Stability Pact and the ‘golden rule’," Fiscal Studies, Institute for Fiscal Studies, vol. 21(2), pages 207-229, June.
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    Cited by:

    1. Nastasia Henry & Alain Venditti, 2023. "On the (de)stabilization role of protectionism: Theory and evidence," Working Papers hal-04311555, HAL.
    2. Izu, Akhenaton, 2014. "Crise de la dette et détresse sociale du peuple congolais [Debt crisis and social distress of the Congolese]," MPRA Paper 64186, University Library of Munich, Germany, revised 05 Feb 2015.

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