Financial Globalization, Inequality, and the Rising Public Debt
构建了一个多国不完全市场模型，发现国际金融市场一体化会导致政府选择更高债务，且不可保收入波动（异质性风险）增大也会推高公共债务，为发达国家债务上升提供了新解释。
During the last three decades government debt has increased in most developed countries. During the same period we have also observed a significant liberalization of international financial markets. We propose a multicountry model with incomplete markets and show that governments may choose higher levels of debt when financial markets become internationally integrated. We also show that public debt increases with the volatility of uninsurable income (idiosyncratic risk). To the extent that the increase in income inequality observed in some industrialized countries has been associated with higher idiosyncratic risk, the paper suggests another potential mechanism for the rise in public debt.