Government Debt and Capital Accumulation in the Blanchard-Cass-Yaari OLG Model
University of Aarhus Economics Working Paper 2000-14
10 Pages Posted: 12 Mar 2001
Date Written: October 20, 2000
Abstract
It is shown that although government debt in principle has an ambiguous effect on the steady state capital stock in an OLG model of the Blanchard-Cass-Yaari variety, once stability of the steady state equilibrium is imposed there is an unambiguous negative relation between the level of government debt and the capital stock.
JEL Classification: E13, H63
Suggested Citation: Suggested Citation
Rasmussen, Bo Sandemann, Government Debt and Capital Accumulation in the Blanchard-Cass-Yaari OLG Model (October 20, 2000). University of Aarhus Economics Working Paper 2000-14, Available at SSRN: https://ssrn.com/abstract=255590 or http://dx.doi.org/10.2139/ssrn.255590
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.