ダウンロード数: 479
タイトル: | The Optimum Quantity of Debt for Japan |
著者: | Nakajima, Tomoyuki Takahashi, Shuhei |
キーワード: | Government debt welfare incomplete markets inequality uncertainty Japanese economy |
発行日: | Feb-2017 |
出版者: | Institute of Economic Research, Kyoto University |
誌名: | KIER Discussion Paper |
巻: | 964 |
抄録: | Japan's net government debt reached 130% of GDP in 2013. The present paper analyzes the welfare implications of the large debt for Japan. We use a heterogeneousagent, incomplete-market model with idiosyncratic wage risk and endogenous labor supply. We find that under the utilitarian welfare measure, the optimal government debt for Japan is -50% of GDP and the current level of debt incurs the welfare cost that is 0.22% of consumption. Decomposing the welfare cost reveals substantial welfare effects arising from changes in the level, inequality, and uncertainty. The level and inequality costs are 0.38% and 0.52% respectively, whereas the uncertainty benefit is 0.68%. Adjusting consumption taxes instead of factor income taxes to balance the government budget reduces the welfare cost of the current debt, whereas the indivisibility of labor increases the cost. |
URI: | http://hdl.handle.net/2433/218657 |
出現コレクション: | KIER Discussion Paper (英文版) |
このリポジトリに保管されているアイテムはすべて著作権により保護されています。