The effect of the behavior of an average consumer on the public debt dynamics
arXiv:1706.07759 · doi:10.1016/j.physa.2017.04.099
Abstract
An important issue within the present economic crisis is understanding the dynamics of the public debt of a given country, and how the behavior of average consumers and tax payers in that country affects it. Starting from a model of the average consumer behavior introduced earlier by the authors, we propose a simple model to quantitatively address this issue. The model is then studied and analytically solved under some reasonable simplifying assumptions. In this way we obtain a condition under which the public debt steadily decreases.
4 pages, 1 figures, submitted for publication to Physica A