| 000 | 02550cam a22003737 4500 | ||
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| 001 | w28952 | ||
| 003 | NBER | ||
| 005 | 20211020103128.0 | ||
| 006 | m o d | ||
| 007 | cr cnu|||||||| | ||
| 008 | 210910s2021 mau fo 000 0 eng d | ||
| 100 | 1 | _aBrumm, Johannes. | |
| 245 | 1 | 0 |
_aDeficit Follies / _cJohannes Brumm, Xiangyu Feng, Laurence J. Kotlikoff, Felix Kubler. |
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_aCambridge, Mass. _bNational Bureau of Economic Research _c2021. |
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_a1 online resource: _billustrations (black and white); |
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| 490 | 1 |
_aNBER working paper series _vno. w28952 |
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| 500 | _aJune 2021. | ||
| 520 | 3 | _aDeficit finance is free when the growth rate routinely exceeds the government's borrowing rate. Or so many people say. This note presents three counterexamples. Each features a simple OLG economy with a zero growth rate and a negative government borrowing rate. None provides a basis for taking from the young and giving to the old. One example features idiosyncratic risk, one features policy uncertainty, and one features a safe borrowing rate that exceeds the safe lending rate. Progressive taxation cures the first problem. Policy resolution cures the second. And improved intermediation, perhaps organized by the government, cures the third. The three models are parables. Each conveys an inconvenient truth. Seemingly free deficits may, on careful inspection, be far more costly than they appear. Indeed, government intergenerational redistribution can lower the government borrowing rate, encouraging yet more inefficient deficit finance. | |
| 530 | _aHardcopy version available to institutional subscribers | ||
| 538 | _aSystem requirements: Adobe [Acrobat] Reader required for PDF files. | ||
| 538 | _aMode of access: World Wide Web. | ||
| 588 | 0 | _aPrint version record | |
| 690 | 7 |
_aE21 - Consumption • Saving • Wealth _2Journal of Economic Literature class. |
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| 690 | 7 |
_aE6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook _2Journal of Economic Literature class. |
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| 690 | 7 |
_aH6 - National Budget, Deficit, and Debt _2Journal of Economic Literature class. |
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| 700 | 1 | _aFeng, Xiangyu. | |
| 700 | 1 |
_aKotlikoff, Laurence J. _914524 |
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| 700 | 1 |
_aKubler, Felix. _914630 |
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| 710 | 2 | _aNational Bureau of Economic Research. | |
| 830 | 0 |
_aWorking Paper Series (National Bureau of Economic Research) _vno. w28952. |
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| 856 | 4 | 0 | _uhttps://www.nber.org/papers/w28952 |
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_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w28952 |
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_2ddc _cW-PAPER |
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_c387877 _d346439 |
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