The Welfare Effects of Debt: Crowding Out and Risk Shifting: Working Paper 2022-10
No 58849, Working Papers from Congressional Budget Office
Government debt affects peopleâ€™s welfare through two distinct channels: It crowds out capital, and it shifts risk from current to future generations. This study extends Olivier Blanchardâ€™s 2019 analysis of the welfare effects of debt by decomposing his estimates into those two categories. Blanchard estimated the change in average utility under simulations of an overlapping generations model with and without a transfer of wealth from the younger to the older generation. This study decomposes those estimated welfare effects into crowding-out and risk- shifting components and
JEL-codes: E22 E23 E43 E62 H50 H63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dge and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
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:cbo:wpaper:58849
Access Statistics for this paper
More papers in Working Papers from Congressional Budget Office Contact information at EDIRC.
Bibliographic data for series maintained by ().