Equivalence in the internal and external public debt burden

Philippe Darreau (1) , François Pigalle (1)

1 LAPE - Laboratoire d'Analyse et de Prospective Economique

Whether public debt is internal or external, the burden is equivalent in the OLG model. This equivalence holds, regardless of whether the definition of burden reflects Modigliani's view or Lerner's perspective. It results from the assumption of perfect substitutability between public debt and productive capital.

Domaines: Économie et finance quantitative [q-fin]

Philippe Darreau, François Pigalle. Equivalence in the internal and external public debt burden. Economics Bulletin, 2013, 33, pp.2475 - 2482. ⟨hal-01076343⟩