On the Debt to GDP Ratio in Monopolistic Competition

Many people in Japan and other countries believe that national finances will not stand still and will go bankrupt if deficits continue at present level. It is like a religion. In this paper, however, we prove that this religion is wrong by using a simple mathematical model.

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Main Author: Tanaka Yasuhito
Format: Article
Language:English
Published: Sciendo 2025-06-01
Series:Folia Oeconomica Stetinensia
Subjects:
Online Access:https://doi.org/10.2478/foli-2025-0016
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author Tanaka Yasuhito
author_facet Tanaka Yasuhito
author_sort Tanaka Yasuhito
collection DOAJ
description Many people in Japan and other countries believe that national finances will not stand still and will go bankrupt if deficits continue at present level. It is like a religion. In this paper, however, we prove that this religion is wrong by using a simple mathematical model.
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publishDate 2025-06-01
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series Folia Oeconomica Stetinensia
spelling doaj-art-4d5c5148b7d84e2b83f6e7731d86d8792025-08-20T03:20:13ZengSciendoFolia Oeconomica Stetinensia1898-01982025-06-0125131733610.2478/foli-2025-0016On the Debt to GDP Ratio in Monopolistic CompetitionTanaka Yasuhito0Faculty of Economics, Doshisha University, Kyoto, JapanMany people in Japan and other countries believe that national finances will not stand still and will go bankrupt if deficits continue at present level. It is like a religion. In this paper, however, we prove that this religion is wrong by using a simple mathematical model.https://doi.org/10.2478/foli-2025-0016debt to gdp ratiooverlapping generations modelmonopolistic competitionfiscal collapsee24e62
spellingShingle Tanaka Yasuhito
On the Debt to GDP Ratio in Monopolistic Competition
Folia Oeconomica Stetinensia
debt to gdp ratio
overlapping generations model
monopolistic competition
fiscal collapse
e24
e62
title On the Debt to GDP Ratio in Monopolistic Competition
title_full On the Debt to GDP Ratio in Monopolistic Competition
title_fullStr On the Debt to GDP Ratio in Monopolistic Competition
title_full_unstemmed On the Debt to GDP Ratio in Monopolistic Competition
title_short On the Debt to GDP Ratio in Monopolistic Competition
title_sort on the debt to gdp ratio in monopolistic competition
topic debt to gdp ratio
overlapping generations model
monopolistic competition
fiscal collapse
e24
e62
url https://doi.org/10.2478/foli-2025-0016
work_keys_str_mv AT tanakayasuhito onthedebttogdpratioinmonopolisticcompetition