Public debt and aggregate stability with endogenous growth and a state-dependent consumption tax

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Public debt and aggregate stability with endogenous growth and a state-dependent consumption tax

JournalArticle (Originalarbeit in einer wissenschaftlichen Zeitschrift)

ID	3603375
Author(s)	Greiner, Alfred; Bondarev, Anton
Author(s) at UniBasel	Bondarev, Anton
Year	2015
Title	Public debt and aggregate stability with endogenous growth and a state-dependent consumption tax
Journal	Economics bulletin
Volume	35
Number	4
Pages / Article-Number	2601-2609
Keywords	Balanced budget, public debt, stability, endogenous growth
Abstract	We analyze a basic endogenous growth model with public debt and a state-dependent consumption tax rate. We show that the balanced budget rule guarantees that the long-run growth path of the economy is unique and saddle point stable unless the tax rate is strongly regressive. In case of a strongly regressive consumption tax rate over a certain range, multiple balanced growth paths and local indeterminacy can arise.
Publisher	University of Illinois
ISSN/ISBN	1545-2921
URL	http://EconPapers.repec.org/RePEc:ebl:ecbull:eb-15-00503
edoc-URL	http://edoc.unibas.ch/44027/
Full Text on edoc	No

25/04/2024

Research Database / FORSCHUNGSDATENBANK