Debt Policy in a Competitive Two-Sector Overlapping Generations Model

Partha Sen ()

Abstract: In 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]

Keywords: Government Debt; Overlapping Generations; Two-Sector Models; Dynamic Efficiency (search for similar items in EconPapers)
Date: 2010-09
New Economics Papers: this item is included in nep-dge and nep-fdg
Note: Institutional Papers
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Working Paper: Debt Policy in a Competitive Two-Sector Overlapping Generations Model (2005)
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