Finite Lifetimes and the Crowding Out Effects of Budget Deficits

Author / Creator

Poterba, James M

Available as

Online

Summary

Abstract: This note explores the sensitivity of the short-run savings effects of. Abstract: government deficits to assumptions about household planning horizons. Using a. Abstract: lifecycle simula...

Abstract: This note explores the sensitivity of the short-run savings effects of.

Abstract: government deficits to assumptions about household planning horizons. Using a.

Abstract: lifecycle simulation model, we show that even though deficit policies shift.

Abstract: sizable tax burdens to future generations, individuals live long enough to make.

Abstract: the assumption of an infinite horizon a good approximation for analyzing the.

Abstract: short-run savings effects. In practice, periods of debt accumulation such as.

Abstract: that in the United States during World War II are reversed sufficiently rapidly.

Abstract: to make their short-run effects on consumption and national savings relatively.

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