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Eurosystem stability: A stochastic dynamic optimization approach to public debt

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  • Maggi, Bernardo

Abstract

In this paper we focus on the dynamics of tax revenue and debt that should be necessary for the European countries to comply with the rules on which the Stability and Growth Pact (SGP) is founded, when public budgets are expounded to unexpected expenses.

Suggested Citation

  • Maggi, Bernardo, 2023. "Eurosystem stability: A stochastic dynamic optimization approach to public debt," Socio-Economic Planning Sciences, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:soceps:v:90:y:2023:i:c:s0038012123002458
    DOI: 10.1016/j.seps.2023.101733
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    More about this item

    Keywords

    Public debt and tax revenue; Stochastic control; Discrete Riccati equation; Long run equilibrium;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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