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| Philippe Darreau and François Pigalle |
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| ''Equivalence in the internal and external public debt burden'' |
| ( 2013, Vol. 33 No.4 ) |
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| Whether public debt is internal or external, the burden is equivalent in the OLG model. This equivalence holds, regardless of whether the definition of burden reflects Modigliani's view or Lerner's perspective. It results from the assumption of perfect substitutability between public debt and productive capital.
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| Keywords: Public debt, open economy, crowding out, OLG model, burden |
JEL: H6 - National Budget, Deficit, and Debt: General
E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General |
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| Manuscript Received : Jun 24 2013 | | Manuscript Accepted : Oct 03 2013 |
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