1. The effect of the behavior of an average consumer on the public debt dynamics
- Author
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Roberto De Luca, Angelo Falzarano, Marco Di Mauro, and Adele Naddeo
- Subjects
Statistics and Probability ,General Economics (econ.GN) ,media_common.quotation_subject ,Debt-to-GDP ratio ,Macroeconomics ,Quantitative Finance - Economics ,01 natural sciences ,FOS: Economics and business ,Simple (abstract algebra) ,Debt ,0502 economics and business ,0103 physical sciences ,Public debt dynamics ,Econometrics ,Economics ,050207 economics ,Debt levels and flows ,010306 general physics ,Consumer behaviour ,media_common ,Actuarial science ,Representative agent ,05 social sciences ,Condensed Matter Physics ,Dynamics (music) - 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., Comment: 4 pages, 1 figures, submitted for publication to Physica A
- Published
- 2017
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