2007 Fiscal Year Final Research Report Summary
Public Debt, Tax and Applied General Equilibrium Analysys
| Project/Area Number |
17530244
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | Hiroshima University |
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Principal Investigator |
KAN Toshikazu Hiroshima University, Graduate School of Social Sciences, Professor (70033743)
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| Co-Investigator(Kenkyū-buntansha) |
FUTAMURA Hiroshi Hiroshima University, Graduate School of Social Sciences, Professor (70263663)
TAKI Atsuhiro Hiroshima University, Graduate School of Social Sciences, Professor (40216809)
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| Project Period (FY) |
2005 – 2007
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| Keywords | Public Debt / Economic Growth / Crowding-out |
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| Research Abstract |
The relation between public debt and economic growth is one of the most important subjects of economists. This study was intended as an investigation of the possibility of economic growth on condition that the government holds enormous public debt. We tried several approaches to this question, and got some results and reconfirmations.
(1) The effects of crowding-out accompanied with enormous public debt enforce great restrictions on economic growth.
(2) To solve the above problem, our economy must meet some specified conditions. For example, the actual interest rate must be under the natural one.
(3) Our economy must reduce the public debt gradually from the viewpoint of economic growth. These problems become more difficult in the ease that we consider them to adopt dynamic viewpoints. And thus we have challenged to use the general equilibrium approach and the stochastic one. In addition, we are required to expand our static approaches or partial equilibrium ones into the consideration for endogenous economic growth.
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