PUBLIC DEBT BUBBLES IN HETEROGENEOUS AGENT MODELS WITH TAIL RISK
研究了一类不完全保险宏观经济模型中公共债务的泡沫现象，发现实际利率长期低于增长率，且债务水平可持续无上限，增加债务可提高事前稳态福利。
Abstract This article studies the public debt implications of an analytically tractable class of incomplete insurance macroeconomic models in which agents face a near‐zero probability of a highly adverse outcome. In generic models of this kind, there exists a public debt bubble, so that the real interest rate is perpetually below the growth rate (set to zero). There is no upper bound on the deficit level or debt level that is sustainable in a bubbly equilibrium. In a public debt bubble, ex ante steady‐state welfare is higher if the government chooses policies that give rise to a larger level of debt.