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Saturday, May 16, 2020 | History

2 edition of National debt in a neoclassical growth model found in the catalog.

National debt in a neoclassical growth model

Peter A. Diamond

National debt in a neoclassical growth model

by Peter A. Diamond

  • 320 Want to read
  • 12 Currently reading

Published by Institute of Business and Economic Research in Berkeley, Calif .
Written in English

    Subjects:
  • Econometrics.,
  • Economic forecasting -- Mathematical models.,
  • Debts, Public.

  • Edition Notes

    Working paper - Committee on Econometrics and Mathematical Economics ; no. 53

    Statementby Peter A. Diamond.
    SeriesCalifornia. University at Berkeley. Institute of Business and Economic Research. Working paper no. 53
    The Physical Object
    Pagination44 leaves :
    Number of Pages44
    ID Numbers
    Open LibraryOL16385895M

    The paper surveys the neoclassical theory of growth. As a preliminary, the meaning of the adjective "neoclassical" is discussed. The basic model is then sketched, and the conditions ensuring a stationary state are illustrated. The issue of the convergence to a stationary state (and that of the speed of convergence) is further by: North-Holland PRIVATE SAVING AND PUBLIC DEBT A Review Essay Graziella BERTOCCHI* Brown University, Providence, RI USA Private Saving and Public Debt, edited by M.J. Boskin and S. Gorini (Basil Blackwell, Oxford, U.K.. ) and based on the proceedings of a conference held in Italy in , is a well-documented, policy-oriented guide to Cited by: 1.

    3 Some key implications di⁄erent from neoclassical growth model; 4 Dynamics in some special cases quite similar to Solow model rather than the neoclassical model; 5 Generate new insights about the role of national debt and Social Security in the economy. Daron Acemoglu (MIT) Economic Growth Lecture 8 Novem 2 / The Ramsey–Cass–Koopmans model, or Ramsey growth model, is a neoclassical model of economic growth based primarily on the work of Frank P. Ramsey, with significant extensions by David Cass and Tjalling Koopmans. The Ramsey–Cass–Koopmans model differs from the Solow–Swan model in that the choice of consumption is explicitly microfounded at a point in time and so endogenizes the.

    The overlapping generations (OLG) model is one of the dominating frameworks of analysis in the study of macroeconomic dynamics and economic contrast, to the Ramsey–Cass–Koopmans neoclassical growth model in which individuals are infinitely-lived, in the OLG model individuals live a finite length of time, long enough to overlap with at least one period of another agent's g: National debt.   Diamond, Peter A. () National debt in a neoclassical growth model. American Economic Rev – Gonzalez-Eiras, Martin and Cited by: 2.


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National debt in a neoclassical growth model by Peter A. Diamond Download PDF EPUB FB2

Modigliani [4] has explored the effects of the existence of govern. NATIONAL DEBT IN A NEOCLASSICAL GROWTH MODEL. By PETER A. DIAMOND*. This paper contains a model designed to serve two purposes, to.

examine long-run competitive equilibrium in a growth model and then. to explore the effects on this equilibrium of government debt.

NATIONAL DEBT IN A NEO-CLASSICAL GROWTH MODEL: COMMENT I. Introduction In a recent paper in this journal, P. Diamond [1] examines the effects of a con-stant amount of national debt per head on the utility of a citizen.

In his growing neo-classical economy with overlapping genera-tions, he shows that individuals living in the. National Debt in a Neoclassical Growth Model.

AEA Summary: Building on Paul Samuelson’s seminal work concerning consumption loans between individuals of different generations, this paper pioneered the analysis of overlapping generations (OLG) models with durable capital goods.

It illumnated the properties of such models through two fundamental contributions. National Debt, Savings, and Real Interest Rates in a Neoclassical Model with Endogenous Labour Supply and Knowledge-Based Growth Author(s): Shawn Ni Source: The Canadian Journal of Economics / Revue canadienne d'Economique, Vol.

32, No. 5 (Nov., ), pp. Published by: Blackwell Publishing on behalf of the Canadian Economics AssociationFile Size: KB. debt in a neoclassical world in the case of any type of consumption behaviour. Our results are threefold. First, contrary to the RCK model, public debt reduces long-run output in the Blanchard model and the Solow model, although to a different extent: the crowding-out effect is marginal in the former, whereas it can be very large in the : Ákos Dombi, István Dedák.

National Debt in a Neoclassical Growth Model: Comment G O Bierwag, M A Grove and Chulsoon Khang American Economic Review,vol. 59, issue 1, Cited by: We are not the first to investigate the crowding-out effect of public debt in neoclassical growth models.

Indeed, there is a long history of this vein of the literature. 4 We quote only the major milestones here. In his seminal paper, Diamond () deals with the effect of public debt in a life-cycle OLG Size: KB.

Peter A. Diamond (), in a seminal a utility-maximizing neoclassical growth model, makes a distinction between internal and external debt in efficient and inefficient markets. The author shows that internal and external debt work negatively on economic growthvia increased, File Size: KB.

In Understanding the National Debt: What Every American Needs to Know, economic historian Carl Lane urges that the national debt must be addressed in ways beyond program cuts or tax increase alternatives, but change can only occur when more Americans understand what constitutes our debt and the problems it causes.

The gross national debt is 4/5(2). National Debt in a Neoclassical Growth Model () A copy of the paper can be found here. Length: 24 pages This paper contains a model designed to serve two purposes, to examine long-run competitive equilibrium in a growth model and then to explore the effects on this equilibrium of government debt.

NATIONAL DEBT IN A NEOCLASSICAL GROWTH MODEL By PETER A. DIAMOND* This paper contains a model designed to serve two purposes, to examine long-run competitive equilibrium in a growth model and then to explore the effects on this equilibrium of government debt.

This text presents a new neoclassical model, one which exists within discrete time and does not consider population growth. The author uses detailed formulas and calculations to also illustrate Ricardian Equivalence, an economic theory which suggests that the government can finance spending with either public debt or tax increase, as market 4/5(15).

National debt in a neoclassica More details; National debt in a neoclassical growth model. Peter A. Diamond. Year of publication: Authors: Diamond, Peter A. Published in: The American economic review.

- Nashville, Tenn.: American Economic Assoc., ISSNZDB-ID X. - Vol.1, p. The golden rule and. classical economists and public debt 5 the amount of savings matches the size of public deficit and, therefore, the interest-rate remains the same, which means that there is no crowding out.

classical economists and public debt 7 A critique to the above argument is th at individuals have limited lifetime and, therefore, they do not care very mu ch about the tax, since what they willAuthor: Lefteris Tsoulfidis.

Diamond P () National debt in a neoclassical growth model. Am Econ Rev 55(5)– Google Scholar Drazen A () Government debt, human capital, and bequests in a life-cycle : Sibabrata Das, Alex Mourmouras, Peter C. Rangazas. The basic framework of the theoretical model discussed in the chapter—most aspects of which are found in the standard literature on neoclassical growth, saving, national debt, labor supply, and taxation of the past 20 years— is a Solow-type one-sector growth model in which population grows at a constant, exogenously given rate, and in which.

National Debt in a SFC Version of a Neoclassical Growth Model In my last post, I set out the details of a Stock-Flow Consistent (SFC) model designed to capture the structure of the neo-classical model used by Diamond in his paper National Debit in a Neoclassical Growth Model.

Corrections. All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:vyipSee general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title. Franco Modigliani (), ‘Long-Run Implications of Alternative Fiscal Policies and the Burden of the National Debt’, Economic Journal, 71 (), December, –55 3.

Peter A. Diamond (), ‘National Debt in a Neoclassical Growth Model’, American Economic Review, 55 (5), December, –50 B. More Recent Literature 4. Ramsey or Cass-Koopmans model: di⁄ers from the Solow model only because it explicitly models the consumer side and endogenizes savings.

Beyond its use as a basic growth model, also a workhorse for many areas of macroeconomics. Daron Acemoglu (MIT) Economic Growth Lecture 5 .The Neoclassical Growth Model (aka Ramsey Model) No readings: 6: First Exam: No readings: 7: Endogenous Growth [Barro] Chapter 5.

Lucas Jr., Robert E. "Making a Miracle." Econometr no. 2 (): – 8: Fiscal Policy: Taxation, Public Debt, and Redistribution [Barro] Chapt and Barro, Robert J.

"Are Government Bonds Net.Bewley, Truman F. General Equilibrium, Overlapping Generations Models, and Optimal Growth Theory. Harvard University Press, ISBN: Shell, Karl. "Notes on the Economics of Infinity." Journal of Political Econ no. 5 (): – Diamond, Peter A. "National Debt in a Neoclassical.