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. https://government.report/Resources/Whitepapers/b57ea886-7e13-45f3-9ff5-26f0c08623d2_WPIEA2019159.pdf
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A BUFFER-STOCK MODEL FOR THE GOVERNMENT: BALANCING STABILITY AND SUSTAINABILITY
A fiscal reaction function to debt and the cycle is built on a buffer-stock model for the government. This model inspired by the buffer-stock model of the consumer (Deaton 1991; Carroll 1997) includes a debt limit instead of the Intertemporal Budget Constraint (IBC). The IBC is weak (Bohn, 2007), a debt limit is more realistic as it reflects the risk of losing market access. JEAN-MARC FOURNIER DOWNLOAD