Running Primary Deficits Forever in a Dynamically Efficient Economy: Feasibility and Optimality

IF 7.1 1区经济学 Q1 ECONOMICS

Econometrica Pub Date : 2025-09-16 DOI:10.3982/ECTA22749

Andrew B. Abel, Stavros Panageas

引用次数: 0

Abstract

Government debt can be rolled over forever without primary surpluses in some stochastic economies, including some economies that are dynamically efficient. In an overlapping-generations model with constant growth rate, g, of labor-augmenting productivity, and with shocks to the durability of capital, we show that along a balanced growth path, the maximum sustainable ratio of bonds to capital is attained when the risk-free interest rate, r_f, equals g. Furthermore, this maximal ratio maximizes utility per capita along a balanced growth path and ensures that the economy is dynamically efficient.

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动态高效经济中永远维持基本赤字：可行性与最优性

在一些随机经济体（包括一些动态效率较高的经济体），政府债务可以在没有基本盈余的情况下永远展期。在具有恒定的劳动生产率增长率g和对资本持久性的冲击的重叠代模型中，我们表明，在平衡增长路径上，当无风险利率rf等于g时，债券与资本的最大可持续比率达到。此外，这一最大比率在平衡增长路径上最大化了人均效用，并确保了经济的动态效率。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Econometrica 社会科学-数学跨学科应用

CiteScore

11.00

自引率

3.30%

发文量

审稿时长

6-12 weeks

期刊介绍： Econometrica publishes original articles in all branches of economics - theoretical and empirical, abstract and applied, providing wide-ranging coverage across the subject area. It promotes studies that aim at the unification of the theoretical-quantitative and the empirical-quantitative approach to economic problems and that are penetrated by constructive and rigorous thinking. It explores a unique range of topics each year - from the frontier of theoretical developments in many new and important areas, to research on current and applied economic problems, to methodologically innovative, theoretical and applied studies in econometrics. Econometrica maintains a long tradition that submitted articles are refereed carefully and that detailed and thoughtful referee reports are provided to the author as an aid to scientific research, thus ensuring the high calibre of papers found in Econometrica. An international board of editors, together with the referees it has selected, has succeeded in substantially reducing editorial turnaround time, thereby encouraging submissions of the highest quality. We strongly encourage recent Ph. D. graduates to submit their work to Econometrica. Our policy is to take into account the fact that recent graduates are less experienced in the process of writing and submitting papers.