Time-Inconsistent Optimal Quantity of Debt
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DOI: 10.20955/wp.2020.037
Abstract: Abstract A key property of the Aiyagari-type heterogeneous-agent models is that the equilibrium interest rate of public debt lies below the time discount rate. This fundamental property, however, implies that the Ramsey planner’s fiscal policy… read more here.
Keywords: debt; time; time inconsistent; optimal quantity ... See more keywords