Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20257
Authors: 
Cattoir, Philippe
Docquier, Frédéric
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1022
Abstract: 
This paper investigates one of the most important financial issues arising from a secession or a country partitioning namely the sharing of the national public debt. Extending Dr?ze's distributive neutrality condition, we use the generational accounting technique and propose a dynamic debt-sharing criterion which takes into account both the true debt future generations inherit and their contributive capacity. The equivalence with Dr?ze's static rule is only obtained on the balanced growth path, and in the absence of initial regional debt. An application of our criterion to the Belgian case offers striking results.
Subjects: 
public debt
secession
generational accounting
JEL: 
H77
H60
Document Type: 
Working Paper

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