; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Sustainable Plans and Debt"; ; "batchuser@example.com"; "Chari, V. V.", "Kehoe, Patrick J."; "Federal Reserve Bank of Minneapolis"; "Fiscal policy", "Debt", "Economic policy"; "E62 - Fiscal Policy", "E61 - Policy Objectives; Policy Designs and Consistency; Policy Coordination"; "We analyze the incentive for a government to default on its debts in a variant of the Lucas and Stokey (1983) model of optimal taxation. Optimal fiscal policy requires the use of debt to smooth tax distortions over time. Dynamic consistency requires that governments not have an incentive to default on the inherited debt. We consider policy and allocation rules which map the history of the economy into current decisions. A sustainable equilibrium is a sequence of history-contingent functions which satisfy sequential rationality for the government and for private agents. We characterize sustainable equilibrium outcomes when the horizon in finite. We show that, under plausible assumptions, the loss in welfare due to the absence of a commitment technology to honor debts is small."^^; "Father of sustainable plans and mutual default / V. V. Chari, Patrick J. Kehoe."; "1988-06"; "2018-03-13T20:12:11.713481809+00:00"^^; "https://doi.org/10.21034/wp.399"; ; "19931200jet6102"; "https://creativecommons.org/licenses/by-nc/4.0/"; "2020-12-04T22:15:57.295323078+00:00"^^; "19871100fedmwp354", "19890500fedmwp414", "19891100fedmsr125"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "393", "129"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "399"; "Fiscal policy", "Economic policy", "Debt"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; """Published in _Journal of Economic Theory_ (Vol. 61, Iss. 2, December 1993, pp. 230-261), https://doi.org/10.1006/jeth.1993.1068. [Working Paper 354](https://doi.org/10.21034/wp.354) [Staff Report 125](https://doi.org/10.21034/sr.125)"""^^; ; "Publication" . ; .