Dynamic efficiency, the rickless rate and debt
Ponzi games under uncertainty
by Olivier Blanchard
In a dynamically efficienct economy, can a government roll its debt forever and avoid the need to raise taxes? In a series of examples of production economies with zero growth, this paper shows that such Ponzi games may be infeasible even when the average rate of return on bonds is negative, and may be feasible even when the average rate of return on bonds is positive. The paper then reveals the structure which underlies these examples. Keywords: Dynamic efficiency, pareto optimality, bubbles, Ponzi games, public debt, riskless rate.
Check nearby libraries
Buy this book
Previews available in: English
| Edition | Availability |
|---|---|
1
Dynamic efficiency, the rickless rate and debt: Ponzi games under uncertainty
2001, Massachusetts Institute of Technology, Dept. of Economics
in English
|
aaaa
|
Book Details
Edition Notes
Title from cover.
"November 2001."
Includes bibliographical references (p. 19-21).
Abstract in HTML and working paper for download in PDF available via World Wide Web at the Social Science Research Network.
Supported in part by the National Science Foundation.
The Physical Object
Edition Identifiers
Work Identifiers
Community Reviews (0)
Lists
See All
History
- Created April 30, 2011
- 2 revisions
Wikipedia citation
×CloseCopy and paste this code into your Wikipedia page. Need help?
| April 30, 2011 | Edited by ImportBot | Added new cover |
| April 30, 2011 | Created by ImportBot | Imported from Internet Archive item record |