Debt Policy in a Competitive Two-Sector Overlapping Generations Model
Published By: CDE on eSS | Published Date: July, 28 , 2005In this paper debt policy in a two-period, two-sector overlapping generations model with Leontief technologies has been analysed. It has been found that debt, issued to transfer resources to the initially old, could be welfare improving in the new steady state for an economy which satisfies the usual conditions for dynamic efficiency viz. the rate of interest is at least as great as the population growth rate. [Working paper No. 137]
Author(s): Partha Sen | Posted on: Sep 28, 2010 | Views(1271) | Download (694)