Debt stabilization in a non-Ricardian economy
In models with a representative infinitely lived household, modern versions of tax smoothing imply that the steady-state of government debt should follow a random walk. This is unlikely to be the case in OLG economies, where the equilibrium interest rate may differ from the policy-maker's rate...
| Main Authors: | , , |
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| Format: | Working paper |
| Published: |
University of Oxford
2011
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