BIROn - Birkbeck Institutional Research Online

    Government budget deficits in large open economies

    Buiter, W. and Sibert, Anne (2011) Government budget deficits in large open economies. Working Paper. Birkbeck, University of London, London, UK.

    finalversionMay2011.pdf - Published Version of Record

    Download (283kB) | Preview


    Large and growing levels of public debt in the United States, United Kingdom, Japan and the Euro Area raise new interest in the cross-country effects of a large open economy's deficits. We consider a dynamic optimising model with costly tax collection and exogenously given public spending and initial debt. We ask whether the externalities associated with an individual country's deficits are positive or negative. We characterise the path of taxes in the Nash equilibrium where policy makers act nationalistically and compare this outcome to the global optimal outcome.


    Item Type: Monograph (Working Paper)
    Additional Information: JEL classification: E62, F42, H21
    Keyword(s) / Subject(s): fiscal policy, international policy coordination, optimal taxation
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Depositing User: Sarah Hall
    Date Deposited: 06 May 2014 16:32
    Last Modified: 02 Aug 2023 17:10


    Activity Overview
    6 month trend
    6 month trend

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item