TY  - JOUR
AU  - Elmendorf,Douglas W.
AU  - Mankiw,N. Gregory
TI  - Government Debt
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6470
PY  - 1998
Y2  - March 1998
UR  - http://www.nber.org/papers/w6470
L1  - http://www.nber.org/papers/w6470.pdf
N1  - Author contact info:
Douglas Elmendorf
Director, Congressional Budget Office
Congressional Budget Office
Ford House Office Building, 4th Floor
Second and D Streets, SW
Washington, DC 20515
E-Mail: doug.elmendorf@cbo.gov

N. Gregory Mankiw
Department of Economics
Littauer 223
Harvard University
Cambridge, MA  02138
Tel: 617/495-4301
Fax: 617/495-7730
E-Mail: ngmankiw@fas.harvard.edu
AB  - 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.
ER  -