Sustainability of the public debt and wealth inequalitin in a general equilibrium modely

Konishi, Kunihiko; Maebayashi, Noritaka

Discussion Papers In Economics And Business, 2016, 16-33, 1-34

Number of Access:219（2025-06-12 18:39 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/58824

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Title
Sustainability of the public debt and wealth inequalitin in a general equilibrium modely
Creator
NRID
1000010077802 1000010077802
CreatorName
Konishi, Kunihiko
NRID
1000030735733 1000030735733
CreatorName
Maebayashi, Noritaka
Subject
Fiscal sustainability
Public debt
Wealth inequality
Redistributive policy
Endogenous growth
Abstract
This study investigates the correlation between sustainability of the public debt and wealth inequality in an endogenous growth model with heterogeneous agents. We show that the threshold for the sustainability of public debt can be related to not only relative size of public debt but also wealth inequality. In addition, this study examines the effects of budget deficit and redistributive policies on the sustainability of the public debt and wealth inequality. We show that an increase in the deficit ratio or the redistributive tax makes the public debt less sustainable. If the economy falls into the unsustainable region as a result of the policy change, both public debt and wealth inequality continue to increase.
Publisher
Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University
Source Title
Discussion Papers In Economics And Business
Volume (Issue)
16-33
Page
1-34
Date of Issued
2016-12
Language
English
Handle URL
https://hdl.handle.net/11094/58824
NCID
AA1160366X
Relation.references
URI
http://www2.econ.osaka-u.ac.jp/library/global/dp/1633.pdf
Access Rights
metadata only access
Category
ディスカッション／ワーキング・ペーパー DP/WP
Discussion Papers In Economics And Business