Working in the context of an endogenous growth model with the public sector, we show that forward-looking agents' optimizing behavior typically gives rise to a wealth-based, rather than to an output-based, sustainability index of government policy. New insights emerge from calibrating the index to European countries along with the U.S. and Japan as reference countries.
Assessing sovereign debt sustainability using a wealth-based fiscal indicator / Canofari, P; Piergallini, A; Piersanti, G. - In: ECONOMICS BULLETIN. - ISSN 1545-2921. - ELETTRONICO. - 40:4(2020), pp. 2677-2688.
Assessing sovereign debt sustainability using a wealth-based fiscal indicator
Canofari, P
;
2020-01-01
Abstract
Working in the context of an endogenous growth model with the public sector, we show that forward-looking agents' optimizing behavior typically gives rise to a wealth-based, rather than to an output-based, sustainability index of government policy. New insights emerge from calibrating the index to European countries along with the U.S. and Japan as reference countries.File in questo prodotto:
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