The effectiveness of government debt and transfers as insurance

• 成果类型: Article
• 署名作者: Flodén, M
• 署名单位: Stockholm School of Economics
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(01)00064-2
• 发表日期: 2001
• 页码: 81-108
• 关键词: redistributive taxation; public debt; idiosyncratic risk; social insurance; welfare measures

摘要

Government debt and redistributive taxation can help people to smooth consumption when facing uninsurable individual specific risk. I examine the effects that variations in public debt and transfers have on risk sharing, efficiency, and the distribution of resources. I find that risk sharing can be improved significantly by both debt and transfers, but that debt has adverse effects on equity. When used in isolation, debt will enhance welfare if transfers are lower than optimal. However, the beneficial effects of public debt vanish if transfers are used optimally. (C) 2001 Elsevier Science B.V. All rights reserved.