The effect of the behavior of an average consumer on the public debt dynamics

Roberto De Luca, Marco Di Mauro, Angelo Falzarano and Adele Naddeo

Physica A: Statistical Mechanics and its Applications, 2017, vol. 482, issue C, 357-361

Abstract: An important issue within the present economic crisis is understanding the dynamics of the public debt of a given country, and how the behavior of average consumers and tax payers in that country affects it. Starting from a model of the average consumer behavior introduced earlier by the authors, we propose a simple model to quantitatively address this issue. The model is then studied and analytically solved under some reasonable simplifying assumptions. In this way we obtain a condition under which the public debt steadily decreases.

Keywords: Public debt dynamics; Macroeconomics; Representative agent (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:482:y:2017:i:c:p:357-361

DOI: 10.1016/j.physa.2017.04.099

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