Sur les interactions entre politiques de dette publique et de transfert

Marie Bessec, Audrey Desbonnet (), Sumudu Kankanamge and Thomas Weitzenblum ()
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Audrey Desbonnet: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Thomas Weitzenblum: EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé

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Abstract: In this paper, we investigate the interactions between public debt and transfer policies in a framework based on Floden [2001], that we extend to allow for transitional dynamics between steady states. First, we show that, starting from a high level of public debt, it is possible to implement a policy that reduces public debt without generating welfare losses, as long as it is associated with transitory transfers adjustments. Secondly, we define and compute an equilibrium that takes into consideration the government's incentive to implement unexpected adjustments in both public debt and transfers. We show that the long run equilibrium over public debt and transfers in Floden [2001] is not stable with respect to these short term incentives. Simulations reveal that our equilibrium and Floden [2001]'s one considerably differ in quantitative terms.

Keywords: Fiscal policy; public debt; transfers; Fiscalité; dette publique; transferts; transition (search for similar items in EconPapers)
Date: 2012
Note: View the original document on HAL open archive server: https://hal.science/hal-01515625v1
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Published in Revue d'économie politique, 2012, 122 (6)

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Journal Article: Sur les interactions entre politiques de dette publique et de transfert (2012)
Working Paper: Sur les interactions entre politiques de dette publique et de transfert (2012)
Working Paper: Sur les interactions entre politiques de dette publique et de transfert (2012)
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