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Public debt and demography. An analysis of the Italian case

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  • Schilirò, Daniele

Abstract

This paper focuses on the challenges posed by high public debt and demographic decline in Italy. The interplay between these two factors threatens debt sustainability and hinders economic growth. A large debt stock constrains economic policy choices and limits national sovereignty. Meanwhile, population decline affects public spending and tends to exacerbate public debt, further complicating its sustainability. Possible policy options to counterbalance this issue include immigration, increasing labor force participation, pension reforms, fiscal consolidation, and investment in education targeted at the young population.

Suggested Citation

  • Schilirò, Daniele, 2024. "Public debt and demography. An analysis of the Italian case," MPRA Paper 121958, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121958
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    File URL: https://mpra.ub.uni-muenchen.de/121958/1/MPRA_paper_121958.pdf
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    References listed on IDEAS

    as
    1. Panizza, Ugo & Presbitero, Andrea F., 2014. "Public debt and economic growth: Is there a causal effect?," Journal of Macroeconomics, Elsevier, vol. 41(C), pages 21-41.
    2. Daniele, SCHILIRO', 2019. "Public debt and growth in Italy:Analysis and policy proposals," MPRA Paper 97950, University Library of Munich, Germany, revised Nov 2019.
    3. Schilirò, Daniele, 2021. "Digital transformation, COVID-19, and the future of work," MPRA Paper 108817, University Library of Munich, Germany.
    4. Francesco Giavazzi & Guido Tabellini, 2020. "Covid Perpetual Eurobonds: Jointly guaranteed and supported by the ECB," Vox eBook Chapters, in: AgneÌ€s BeÌ nassy-QueÌ reÌ & Beatrice Weder di Mauro (ed.), Europe in the Time of Covid-19, edition 1, volume 1, chapter 1, pages 235-239, Centre for Economic Policy Research.
    5. Schilirò, Daniele, 2023. "Technological progress and the future of work," MPRA Paper 117927, University Library of Munich, Germany.
    6. Schilirò, Daniele, 2013. "Mediterraneo: migrazioni e sviluppo economico [Mediterranean: migrations and economic development]," MPRA Paper 72745, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Schilirò, Daniele, 2025. "Occupazione e problemi del mercato del lavoro in Italia [Employment and labour market problems in Italy]," MPRA Paper 123340, University Library of Munich, Germany.

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    More about this item

    Keywords

    public debt; demography; declining population; sustainable debt; growth; immigration;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • J0 - Labor and Demographic Economics - - General
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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