Public debt in a descriptive endogenous growth model

Greiner A (2019) Universität Bielefeld Working Papers in Economics and Management; 05-2019.
Bielefeld: Bielefeld University, Department of Business Administration and Economics.

Diskussionspapier | Veröffentlicht | Englisch
 
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Abstract / Bemerkung
In this paper we analyze a descriptive endogenous growth model with public debt. The government can run into debt, but, the primary surplus is a positive function of the debt to GDP ratio such that the debt ratio becomes a mean-reverting process. We show that a balanced budget scenario yields a higher long-run growth rate than a scenario with permanent deficits if and only if the public deficit exceeds the net saving out of government bonds. As regards the dynamics, the analysis shows that multiple balanced growth paths can arise. Further, reducing the reaction of the primary surplus to a higher public debt can generate endogenous cycles via a Hopf bifurcation and, for a sufficiently low reaction coefficient, the economy becomes unstable.
Stichworte
Public debt; balanced budget; endogenous growth; stability
Erscheinungsjahr
2019
Band
05-2019
ISSN
2196-2723
Page URI
https://pub.uni-bielefeld.de/record/2934699

Zitieren

Greiner A. Public debt in a descriptive endogenous growth model. Universität Bielefeld Working Papers in Economics and Management. Vol 05-2019. Bielefeld: Bielefeld University, Department of Business Administration and Economics; 2019.
Greiner, A. (2019). Public debt in a descriptive endogenous growth model (Universität Bielefeld Working Papers in Economics and Management, 05-2019). Bielefeld: Bielefeld University, Department of Business Administration and Economics. doi:10.4119/unibi/2934699
Greiner, A. (2019). Public debt in a descriptive endogenous growth model. Universität Bielefeld Working Papers in Economics and Management, 05-2019, Bielefeld: Bielefeld University, Department of Business Administration and Economics.
Greiner, A., 2019. Public debt in a descriptive endogenous growth model, Universität Bielefeld Working Papers in Economics and Management, no.05-2019, Bielefeld: Bielefeld University, Department of Business Administration and Economics.
A. Greiner, Public debt in a descriptive endogenous growth model, Universität Bielefeld Working Papers in Economics and Management, vol. 05-2019, Bielefeld: Bielefeld University, Department of Business Administration and Economics, 2019.
Greiner, A.: Public debt in a descriptive endogenous growth model. Universität Bielefeld Working Papers in Economics and Management, 05-2019. Bielefeld University, Department of Business Administration and Economics, Bielefeld (2019).
Greiner, Alfred. Public debt in a descriptive endogenous growth model. Bielefeld: Bielefeld University, Department of Business Administration and Economics, 2019. Universität Bielefeld Working Papers in Economics and Management. 05-2019.
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2019-09-06T09:19:06Z
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