Ανάρτηση Ερευνητικού Δοκιμίου no 04/24

Ερευνητικό Δοκίμιο no 04/24 με τίτλο "με τίτλο "Public Debt Consolidation: Aggregate and Distributional Implications in a Small Open Economy of the Euro Area"

του Ελευθέριου-Θεόδωρου Ρουμπάνη" 

Περίληψη

This paper builds, calibrates and solves numerically a small open economy  D(S)GE model for Greece, as a country that belongs to a monetary union and faces sovereign interest rate premia due to high debt problems. In  this model the fiscal authorities are engaged in public debt reduction over time. The emphasis is on the aggregate and distributional implications of debt consolidation, where income heterogeneity, and hence distribution, has to do with the distinction between capital owners, private workers and public employees. The paper focuses on how these implications depend on the specific fiscal policy instruments used for debt consolidation. A rather  general result is that, irrespectively of the fiscal policy instruments used, debt consolidation promotes equality both in the new reformed steady state and the transition. Specifically, in all cases, and relative to the status quo, capitalists get worse off, while all the rest become better off.

Ο Ελευθέριος-Θεόδωρος Ρουμπάνης είναι Διδάκτορας του τμήματος Οικονομικής Επιστήμης του Οικονομικού Πανεπιστημίου Αθηνών.