ISBN: 3790800562
TITLE: Public Debt and Endogenous Growth
AUTHOR: Brninger
TOC:

1 Introduction 1
Part I The Closed Economy with AK Production
2 The Solow Model 5
2.1 Introduction 5
2.2 Fixing the Deficit Ratio 6
2.2.1 The Model 6
2.2.2 Stability 12
2.2.3 Some Shocks 12
2.2.4 Summary 18
2.3 Fixing the Tax Rate 18
2.3.1 The Model 18
2.3.2 Stability 21
2.3.3 Some Shocks 22
2.3.4 Summary 27
2.4 The Optimal Deficit Ratio 27
2.4.1 The Model 27
2.4.2 Stability 32
2.4.3 Some Shocks 33
2.4.4 Summary 37
3 The Overlapping Generations Model 39
3.1 Introduction 39
3.2 Fixing the Deficit Ratio 40
3.2.1 The Model 40
3.2.2 Stability 46
3.2.3 A Balanced Budget 48
3.2.4 An Increase in the Deficit Ratio 49
3.2.5 Summary 50
3.3 Fixing the Tax Rate 52
3.3.1 The Model 52
3.3.2 Stability 55
3.3.3 Summary 57
Part II Human Capital and Innovations in the Closed Economy
4 The Augmented Solow Model 61
4.1 Introduction 61
4.2 Fixing the Deficit Ratio 62
4.2.1 The Model 62
4.2.2 Stability 67
4.2.3 Some Shocks 69
4.2.4 Summary 75
4.3 Fixing the Tax Rate 76
4.3.1 The Model 76
4.3.2 A Tax Cut 79
4.3.3 Summary 81
5 The Romer Model 83
5.1 Introduction 83
5.2 Fixing the Deficit Ratio 83
5.2.1 The Model 83
5.2.2 Stability 93
5.2.3 Some Shocks 94
5.2.4 Summary 99
5.3 Fixing the Tax Rate 101
5.3.1 The Model 101
5.3.2 A Tax Cut 109
5.3.3 Summary 110
Part III The Open Economy with AK Production
6 The Solow Model of the Small Open Economy 113
6.1 Introduction 113
6.2 Fixing the Deficit Ratio 114
6.2.1 Perfect Capital Mobility 114
6.2.2 The High-Productivity Country 115
6.2.3 Some Shocks 118
6.2.4 The Low-Productivity Country 121
6.2.5 Stability 125
6.2.6 Some Shocks 126
6.2.7 Summary 129
6.3 Fixing the Tax Rate 130
6.3.1 The High-Productivity Country 130
6.3.2 The Low-Productivity Country 134
6.3.3 Summary 139
7 The Solow Model of a Two-Country World 141
7.1 Introduction 141
7.2 Fixing the Deficit Ratio 142
7.2.1 The Model 142
7.2.2 Stability 147
7.2.3 Some Shocks 150
7.2.4 Summary 153
7.3 Fixing the Tax Rate 155
7.3.1 The Model 155
7.3.2 A Tax Cut 157
7.3.3 Summary 158
8 Conclusion 159
8.1 The Closed Economy with AK Production 159
8.2 Human Capital and Innovations in the Closed Economy 162
8.3 The Open Economy with AK Production 164
9 Result 169
Symbols 171
References 173
END
