Deficits and Intergenerational Welfare in Open Economies / Torsten Persson.

Format:

Book

Author/Creator:

Persson, Torsten.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1083.

NBER working paper series no. w1083

Language:

English

Subjects (All):

Debts, Public--Mathematical models.

Debts, Public.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1983.

Cambridge, Mass : National Bureau of Economic Research, 1983.

Summary:

This paper deals with public debt in open economies, extending Diamond's overlapping generations model to deal with a small openeconor as well as an international eciuilibrium of two large economies. It focuses on the intergenerational welfare redistributions caused by an increase in the public debt triggered by a period of government budget deficit, and shows that these effects are markedly different in open and closed economies. The interplay between the deficits in the government budget and the current account is also analyzed. Here, it is shown how a single period with a deficit in the government budget can be followed by a seciuence of periods with a deficit in the current account.

Notes:

Print version record

February 1983.