DEBT POLICY RULE, UTILITY-GENERATING GOVERNMENT SPENDING, AND INDETERMINACY OF THE TRANSITION PATH IN AN AK MODEL. (30th October 2017)
- Record Type:
- Journal Article
- Title:
- DEBT POLICY RULE, UTILITY-GENERATING GOVERNMENT SPENDING, AND INDETERMINACY OF THE TRANSITION PATH IN AN AK MODEL. (30th October 2017)
- Main Title:
- DEBT POLICY RULE, UTILITY-GENERATING GOVERNMENT SPENDING, AND INDETERMINACY OF THE TRANSITION PATH IN AN AK MODEL
- Authors:
- Hori, Takeo
Maebayashi, Noritaka - Abstract:
- Abstract : This study examines the effects of borrowing for public services that increase households' utility (i.e., utility-generating government services) in an AK endogenous growth model. We assume that the government has a target debt ratio. The European Union and the United Kingdom adopt such debt policy rules. We find that application of a debt policy rule into utility-generating government spending causes indeterminacy of the transition path. We point out that the level of the target debt ratio, the tax rate, and the household utility parameters are important determinants of indeterminacy when considering utility-generating government services.
- Is Part Of:
- Macroeconomic dynamics. Volume 23:Number 6(2019)
- Journal:
- Macroeconomic dynamics
- Issue:
- Volume 23:Number 6(2019)
- Issue Display:
- Volume 23, Issue 6 (2019)
- Year:
- 2019
- Volume:
- 23
- Issue:
- 6
- Issue Sort Value:
- 2019-0023-0006-0000
- Page Start:
- 2360
- Page End:
- 2377
- Publication Date:
- 2017-10-30
- Subjects:
- Public Expenditure, -- Public Debt, -- Debt Policy Rule, -- Indeterminacy
Macroeconomics -- Periodicals
339.05 - Journal URLs:
- http://journals.cambridge.org/action/displayJournal?jid=MDY ↗
- DOI:
- 10.1017/S1365100517000724 ↗
- Languages:
- English
- ISSNs:
- 1365-1005
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library HMNTS - ELD Digital store
- Ingest File:
- 11289.xml