Public debt expansions and the dynamics of the household borrowing constraint
Sign Up to like & getrecommendations! Published in 2019 at "Review of Economic Dynamics"
DOI: 10.1016/j.red.2019.11.002
Abstract: Contrary to a well-established view, public debt expansions may tighten the household borrowing constraint over time. Within an incomplete-markets model featuring an endogenous borrowing limit, we show that plausible debt-financed fiscal policies generate such tightening… read more here.
Keywords: debt expansions; debt; household borrowing; public debt ... See more keywords