Equivalence in the internal and external public debt burden

Philippe Darreau () and François Pigalle ()
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Philippe Darreau: University of Limoges
François Pigalle: University of Limoges

Economics Bulletin, 2013, vol. 33, issue 4, 2475-2482

Abstract: Whether public debt is internal or external, the burden is equivalent in the OLG model. This equivalence holds, regardless of whether the definition of burden reflects Modigliani's view or Lerner's perspective. It results from the assumption of perfect substitutability between public debt and productive capital.

Keywords: Public debt; open economy; crowding out; OLG model; burden (search for similar items in EconPapers)
JEL-codes: E6 H6 (search for similar items in EconPapers)
Date: 2013-10-03
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Citations: View citations in EconPapers (1)

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