TY  - JOUR
AU  - Blanchard,Olivier Jean
AU  - Weil,Philippe
TI  - Dynamic Efficiency, the Riskless Rate, and Debt Ponzi Games Under Uncertainty
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3992
PY  - 1992
Y2  - February 1992
UR  - http://www.nber.org/papers/w3992
L1  - http://www.nber.org/papers/w3992.pdf
N1  - Author contact info:
Olivier J. Blanchard
International Monetary Fund
Economic Counsellor and Director
Research Department
700 19th Street, NW
Rm. 10-700
Washington DC, 20431
Tel: 202-623-7825
Fax: 202-623-7271
E-Mail: blanchar@mit.edu

Philippe Weil
Director, Universite Libre de Bruxelles
ECARES
50, Avenue Roosevelt CP 114
B-1050 Brussels  BELGIUM
Tel: 32-2-650-4220
Fax: 32-2-650-4475
E-Mail: philippe.weil@ulb.ac.be
AB  - Can governments roll their debt over forever in dynamically efficient economies, and thus avoid the need to raise taxes? While the answer is a clear no under certainty, it depends, under uncertainty, on whether public debt provides intergenerational insurance. When it does not, rollover is not possible, even if the rate of return on one-period bonds is below the growth rate. When it does, debt rollover may be possible, even if the return on one-period bonds is above the growth rate.
ER  -