NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Government Debt

Douglas W. Elmendorf, N. Gregory Mankiw

NBER Working Paper No. 6470
Issued in March 1998
NBER Program(s):Public Economics, Economic Fluctuations and Growth

This paper surveys the literature on the macroeconomic effects of government debt. It begins by discussing the data on debt and deficits, including the historical time series, measurement issues, and projections of future fiscal policy. The paper then presents the conventional theory of government debt, which emphasizes aggregate demand in the short run and crowding out in the long run. It next examines the theoretical and empirical debate over the theory of debt neutrality called Ricardian equivalence. Finally, the paper considers the various normative perspectives about how the government should use its ability to borrow.

download in pdf format
   (3340 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w6470

Published: Handbook of Macroeconomics, Vol. 1, Taylor, J.B. and M. Woodford, eds., Elsevier Science, B.V., 1999, pp. 1615-1699.

Users who downloaded this paper also downloaded* these:
Feldstein w16451 Preventing a National Debt Explosion
Giannitsarou and Scott w12654 Inflation Implications of Rising Government Debt
Alesina and Perotti w4637 The Political Economy of Budget Deficits
Reinhart and Rogoff w15795 From Financial Crash to Debt Crisis
Chung and Leeper w13425 What Has Financed Government Debt?
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us