Public debt in an OLG model with imperfect competition

Authors

Peter Skott, University of Massachusetts AmherstFollow
Soon Ryoo, Adelphi UniversityFollow

Working Paper Number

2011-25

Publication Date

2011

Abstract

Fiscal policy is needed to avoid dynamic inefficiency and maintain full employment in a modified Diamond OLG model with imperfect competition. A distributionally neutral tax scheme can maintain full employment in the face of variations in .household confidence.. No variations in taxes will be needed if households correctly anticipate future taxes: the tax policy functions as an insurance scheme.

DOI

https://doi.org/10.7275/3317886

Recommended Citation

Skott, Peter and Ryoo, Soon, "Public debt in an OLG model with imperfect competition" (2011). Economics Department Working Paper Series. 133.
https://doi.org/10.7275/3317886