Intergenerational Aspects of Public Transfers, Borrowing and Debt
1984 (English)Report (Other academic)
The paper analyzes intergeneration distributional effects of taxes, transfer payments, public borrowing and debt. A two-period life-cucle model with overlapping generations is constructed. The model has two specific features: private wealth in both periods enter as arguments in the preference function, and the individuals (inelastically) supply labor in both periods. It turns out that some fiscal policy actions favor both of the currently lliving generations, possibly at the expense of future generations, while other actions generate conflicts between the currently living generations. The analysis also shows that it makes considerable difference whether the "burden" of public spending, debt and borrowing is defined in terms of wealth, consumption and utility. The different implications of foreign vs. domestic debt are examined.
Place, publisher, year, edition, pages
Stockholm: IIES , 1984. , 46 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 299
IdentifiersURN: urn:nbn:se:su:diva-41321OAI: oai:DiVA.org:su-41321DiVA: diva2:329491