The effect of the behavior of an average consumer on the public debt dynamics

DOI10.1016/J.PHYSA.2017.04.099zbMATH Open1495.91074arXiv1706.07759OpenAlexW2609178398MaRDI QIDQ2147657FDOQ2147657

Authors: Roberto De Luca, Marco Di Mauro, Angelo Falzarano, Adele Naddeo 

Publication date: 20 June 2022

Published in: Physica A (Search for Journal in Brave)

Abstract: An important issue within the present economic crisis is understanding the dynamics of the public debt of a given country, and how the behavior of average consumers and tax payers in that country affects it. Starting from a model of the average consumer behavior introduced earlier by the authors, we propose a simple model to quantitatively address this issue. The model is then studied and analytically solved under some reasonable simplifying assumptions. In this way we obtain a condition under which the public debt steadily decreases.

Full work available at URL: https://arxiv.org/abs/1706.07759

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zbMATH Keywords

macroeconomicsrepresentative agentpublic debt dynamics

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64) Interest rates, asset pricing, etc. (stochastic models) (91G30)

Cites Work

• Interest Rates and Coupon Bonds in Quantum Finance
• Statistical mechanics of socio-economic systems with heterogeneous agents
• Public debt, sustainability and economic growth. Theory and empirics

Cited In (1)

• On the (de)stabilizing effect of public debt in a Ramsey model with heterogeneous agents

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