EconPapers    
Economics at your fingertips  
 

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

Greiner Alfred () and Anton Bondarev ()
Additional contact information
Greiner Alfred: Bielefeld University

Economics Bulletin, 2015, vol. 35, issue 4, 2601-2609

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.

Keywords: Balanced budget; public debt; stability; endogenous growth (search for similar items in EconPapers)
JEL-codes: E6 H6 (search for similar items in EconPapers)
Date: 2015-12-13
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I4-P261.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-15-00503

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

 
Page updated 2022-04-16
Handle: RePEc:ebl:ecbull:eb-15-00503