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This paper introduces a public debt stabilization constraint in an overlapping generation model in which non-renewable resources constitute a necessary input in the production function and belong to agents. It shows that stabilization of public debt at high level (as share of capital) may prevent the existence of a sustainable development path. Public debt thus appears as a threat to sustainable development. It also shows that higher public debt-to-capital ratios (and public expenditures-to-capital ones) are associated with lower growth. Two transmission channels are identified. As usual, public debt crowds out capital accumulation. In addition, public debt tends to increase resource use which reduces the rate of growth. We also show that the economy is characterized by saddle path stability. Finally, we show that the public debt-to-capital ratio may be calibrated to implement the social planner optimal allocation.

This paper introduces a public debt stabilization constraint in an overlapping generation model in which non-renewable resources constitute a necessary input in the production function and belong to agents. It shows that stabilization of public debt at high level (as share of capital) may prevent the existence of a sustainable development path. Public debt thus appears as a threat to sustainable development. It also shows that higher public debt-to-capital ratios (and public expenditures-to-capital ones) are associated with lower growth. Two transmission channels are identified. As usual, public debt crowds out capital accumulation. In addition, public debt tends to increase resource use which reduces the rate of growth. We also show that the economy is characterized by saddle path stability. Finally, we show that the public debt-to-capital ratio may be calibrated to implement the social planner optimal allocation.

This paper introduces a public debt stabilization constraint in an overlapping generation model in which non-renewable resources constitute a necessary input in the production function and belong to agents. It shows that stabilization of public debt at high level (as share of capital) may prevent the existence of a sustainable development path. Public debt thus appears as a threat to sustainable development. It also shows that higher public debt-to-capital ratios (and public expenditures-to-capital ones) are associated with lower growth. Two transmission channels are identified. As usual, public debt crowds out capital accumulation. In addition, public debt tends to increase resource use which reduces the rate of growth. We also show that the economy is characterized by saddle path stability. Finally, we show that the public debt-to-capital ratio may be calibrated to implement the social planner optimal allocation.

This paper introduces a public debt stabilization constraint in an overlapping generation model in which non-renewable resources constitute a necessary input in the production function and belong to agents. It shows that stabilization of public debt at high level (as share of capital) may prevent the existence of a sustainable development path. Public debt thus appears as a threat to sustainable development. It also shows that higher public debt-to-capital ratios (and public expenditures-to-capital ones) are associated with lower growth. Two transmission channels are identified. As usual, public debt crowds out capital accumulation. In addition, public debt tends to increase resource use which reduces the rate of growth. We also show that the economy is characterized by saddle path stability. Finally, we show that the public debt-to-capital ratio may be calibrated to implement the social planner optimal allocation.

This paper attempts to demonstrate the significant impact that domestic political-economic factors have in shaping the American defense budget. Evidence is provided which shows that while the military spending burden sustained by the United States is far and away greater than its allies, this may be a function less of free riding on the part of those allies, and more a function of the domestic political-economic needs of the American system. The mutual influence relationship between U.S. military spending and public opinion is then examined and evidence provided which suggests that public support of U.S. political leaders is significantly affected by the arms spending competition between the Soviet Union and the United States during periods when the American public focuses its attention on foreign affairs. Finally, a political business cycle model of American defense spending is examined for the period 1953-1986 and shown to be a useful explanatory device. In particular, it helps illuminate the importance of military spending as policy instrument for economic stabilization and a means of helping secure electoral support from the American public. The analyses in this paper also demonstrate the non-revolutionary character of the Reagan administration defense policies, policies that are very much in keeping with the post-World War II traditions of American administrations. ; Dieser Beitrag versucht, den starken Einfluß innerstaatlicher politisch-ökonomischer Faktoren auf den amerikanischen Verteidigungshaushalt aufzuzeigen. Es wird zwar nachgewiesen, daß die amerikanischen Militärausgaben die der anderen Allierten bei weitem übertreffen, dies konnte jedoch eher an politisch-ökonomischen Zwangen als an dem Trittbrettfahrer-Effekt seitens der Allierten liegen. Die Wechselwirkung zwischen den US-Verteidigungsausgaben und der öffentlichen Meinung wird anschließend untersucht. Die vorliegenden Informationen legen die Vermutung nahe, daß die Unterstiitzung der US-Führung durch die Bevölkerung unter der Bedingung des Rüstungswettbewerbs zwischen den USA und der Sowjet Union dann signifikant variiert, wenn die Aufmerksamkeit der amerikanischen Öffentlichkeit auf die Außenpolitik gerichtet ist. Zum Schluß wird ein politisches Konjunkturzyklusmodell der Verteidigungsausgaben für die Zeit 1953-1986 untersucht, das sich als nützlich für die Erklärung der Rüstungsausgaben erweist. Es wirft weiteres Licht auf die Bedeutung der Rüstungsausgaben als politischem Instrument zur wirtschaftlichen Stabilisierung und als Mittel zur Sicherung der Regierungspopularität. Der Beitrag zeigt außerdem den nicht-revolutionaren Charakter der Reagan-Verteidigungspolitik auf - es war eine Politik, die ganz in der Tradition der Nachkriegsadministrationen stand.

Based on the fact of economic transition from a planned economy to a free market economy with internal, but external and every day more are more obedient than fiscal policy which defines the state (government) have an orientation of economic development, or determining the direction of development of a country, as well as a determining factor of the withdrawal of foreign investment. Western Balkans almost two decades now being attacked by the reality of transition, and the inability of building sustainable fiscal policies, to make proper orientation, as well as to attract foreign investors (The case of Kosovo). The Western Balkan countries are currently in a similar horizon in this journey, where all states are performance and successive challenges, in the same sectors as in the economic, legal and political, which all make an effort to come out this isolation transitive, towards a light, economic stabilization. Kosovo now has an interest, to begin economic stability, but with a perfect start, economic, with a vision and interest provided by the EU, and the many lessons learned by neighboring countries, that are pass, and have, passed, through these economic phases. Therefore we must be as vigilant in adopting and commitment of making the best economies, the experiences of European and Balkan countries, needs a clear cohesion, and doing some medium and long term policies, the economic path of interest Kosovo, for a sustainable economic development This is a reality that provided us with the opportunity to improve but that can never leave without facing directly. Reforms should be modeled taking into account these special features which I think are very long term:1. Investment security, adequate legislation and security, to be implemented straight with the legislation. 2. Attractive Building (attractive) fiscal policy. 3. Transparent privatization of SOEs. 4. Clear procedures and elimination of public administration through byrokracive. Kosovo can be attractive for foreign investors due to the fact that there is a very young population where the average age of the population is 26 years. DOI:10.5901/mjss.2014.v5n20p990

Why did the leaders of four very different countries-Brazil, Russia, India, and China-decide to hold a summit in 2009 in Yekaterinburg, thus transforming "the BRICs" from a financial category into a political grouping? I argue that the main driver for the first summit to take place and succeed was to strengthen each member country's international status. The 2009 BRICs summit was successful in that it led to the birth of a political platform during highly unusual international economic and political circumstances. In a global economy in the midst of a recession and widespread uncertainty, the BRICs' relative economic stability and capacity to respond to the crisis was decisive and lent credibility to their call for reform of the international system. The United States' temporarily reduced legitimacy also provided a window of opportunity for emerging powers to act as aspiring guarantors of stability in tomorrow's world. While measureable gains from cooperation and stronger rhetoric that delegitimized the global order did occur in the following years, they were not the primary drivers for the first summit to take place and succeed. (Asian Perspect/GIGA)

As austerity becomes the new normal for advanced nations, questions are raised about whether nations can make the hard choices necessary to bring about a sustainable fiscal future. The political defeat experienced by so many European governments undertaking fiscal consolidations points to the vulnerabilities that leaders will face. This article shows that how some Organization of Economic Cooperation and Development (OECD) nations have survived the daunting politics of fiscal consolidation by timing actions for periods of economic recovery and political honeymoons following elections and by pursuing deficit reduction strategies that emphasize broad sweeping changes yielding high potential for dramatic economic gains over the longer term. Unlike many European nations today, the seemingly endless appetite for US treasuries by worldwide markets give the United States the luxury of choosing to begin deficit reduction only when the economy strengthens. However, the absence of market pressure also reduces the sense of urgency, consigning national leaders to create internal crises such as the 2012 "fiscal cliff" to force their own hand. While the polarized politics characterizing our party system does not bode well for concerted fiscal action, divided government carries the potential for spreading political risks and promoting more sustainable fiscal outcomes, as it has in our recent history and in other nations as well.