PUBLIC DEBT CYCLICALITY AND LONG-RUN GROWTH

Authors

  • Vladimir Kuhl Teles
    • Milene Takasago
      • Fernando Antônio Ribeiro Soares

        DOI:

        https://doi.org/10.22456/2176-5456.9707

        Keywords:

        Hopf bifurcation theorem. Limit cycles. Fiscal policy. Economic growth.

        Abstract

        This paper investigates the relationship between public debt cyclicality and economic growth. It expands the classical Barro (1990) model by relaxing the balanced budget hypothesis, and by introducing the existence of public spending adjustments costs. Our main findings are that the optimal volatility of public debt and consequently of output is different from zero. In other words there is an optimal volatility of public debt that policy makers should achieve to maximize growth.

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        Published

        2009-08-11

        How to Cite

        Teles, V. K., Takasago, M., & Soares, F. A. R. (2009). PUBLIC DEBT CYCLICALITY AND LONG-RUN GROWTH. Análise Econômica, 27(51). https://doi.org/10.22456/2176-5456.9707

        Issue

        Vol. 27 No. 51 (2009): março de 2009

        Section

        Artigos

        License

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