A simple measure of the distributional burden of debt accumulation
Matt Jensen and
Additional contact information
Matt Jensen: American Enterprise Institute
AEI Economics Working Papers from American Enterprise Institute
Distributional analysis is an important feature in discussions of fiscal policy changes. While changes in taxes and spending are typically subject to distributional scoring, the distributional costs of changes in net debt are generally ignored. This paper proposes a measure of the distributional burden of servicing the debt. Our primary measure constructs the real annual cost of servicing the debt for households at various levels of income. The distributional burden of the debt depends critically on the level of interest rates and the manner in which the debt service is financed. Using alternative assumptions about financing, we assess the distributional burden of the current level of government debt and the burden of future debt projected to accumulate under current law, current policy, and the Administration's budget.
Keywords: debt (search for similar items in EconPapers)
JEL-codes: H (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.aei.org/publication/a-simple-measure-of ... of-debt-accumulation (text/html)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aei:rpaper:20310
Access Statistics for this paper
More papers in AEI Economics Working Papers from American Enterprise Institute Contact information at EDIRC.
Bibliographic data for series maintained by Dave Adams, CIO ().