Sustainability of public debt, public capital formation, and endogenous growth in an overlapping generations setting

• 成果类型: Article
• 署名作者: Yakita, Akira
• 署名单位: University of Tsukuba
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2007.05.007
• 发表日期: 2008
• 页码: 897-914
• 关键词: endogenous growth; public capital formation; sustainability of public debts

摘要

Under the golden rule of public finance for public investment with a constant budget deficit/GDP ratio, we show that for the sustainability of government budget deficits there is a threshold of the initial public debt for a given stock of public capital, and that this threshold level of public debt is increasing in the stock of public capital. If the initial public debt is greater than the threshold, the government can no longer sustain budget deficits, while if it is smaller, the government can conduct a permanent deficit policy, which eventually leads to a positive public debt/GDP ratio. (C) 2007 Elsevier B.V. All rights reserved.