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- W1847921978 abstract "In section 1, we postulated that the government fixes the deficit ratio. In section 3, instead, we shall suppose that the government fixes the deficit per head. Let us begin with the dynamics of public debt. The government buys a certain volume of goods and services per head G = gN with g = const. In addition the government borrows a given amount per capita B = bN with b = const. The budget deficit in turn augments public debt (dot{D}=B). Apparently b denotes the deficit per head. Moreover the government collects a lumpsum tax T = tN with t = const. The government pays the interest rate r on public debt D, so public interest equals rD. The government budget constraint is B + T = G + rD. Taking account of the functional relationships, the identity can be expressed as bN + tN = gN + rD. Here the government presets purchases per head and the deficit per head, while it adjusts the lumpsum tax." @default.
- W1847921978 created "2016-06-24" @default.
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- W1847921978 date "1995-01-01" @default.
- W1847921978 modified "2023-09-27" @default.
- W1847921978 title "Fixed Deficit Per Head" @default.
- W1847921978 doi "https://doi.org/10.1007/978-3-642-46965-7_14" @default.
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