Revision of the Non-Divergence Condition (so-called Domar condition) for Government Debt-to-GDP Ratio -- Taking into account consumption from assets or interest income

Tanaka, Yasuhito (2026): Revision of the Non-Divergence Condition (so-called Domar condition) for Government Debt-to-GDP Ratio -- Taking into account consumption from assets or interest income.

Abstract

If we take into account consumption from assets or interest income, the Non-Divergence Condition for Government Debt-to-GDP Ratio should be revised.

• Item Type: MPRA Paper
• Language: English
• Keywords: Non-Divergence Condition for Government Debt-to-GDP Ratio, consumption from assets or interest income
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General

References

Yasuhito Tanaka. On the Non-Divergence Condition of the Debt-GDP Ratio Considering Consumption from Assets and Impossibility of Fiscal Collapse with Arguments about Important Misconceptions in Macroeconomics, Finantial Economics Letters, vol. 4, pp. 37-47, 2025.