This paper develops a tractable continuous-time model to study the fiscal sustainability of government deficits and the joint dynamics of public debt, with two main ingredients: an endogenous interest …
PublishedClassicAmerican Economic Journal: Economic PolicyPublished May 2012
This 2012 American Economic Journal: Economic Policy paper by Alan Auerbach and Yuriy Gorodnichenko estimates how government spending multipliers vary with the state of the business cycle, using a …