Public Debt and Endogenous Growth

This book considers public debt dynamics in various endogenous growth mod­ els, namely the AK model and explicit models of innovation and human cap­ ital accumulation. Furthermore, the closed economy, the small open economy and a two-country world are analysed. In the closed economy model, the focus is on budget deficit and public debt dynamics and their influence on capital growth and output growth. Then, in the open economy model, the effects on foreign debt growth are considered. In a tw...