Debt Dynamics: d(t) = d(t−1)·(1+r)/(1+g) − pb
This lesson is part of the course
In this lesson
You project Valdoria's debt ratio for ten years with the debt-dynamics equation, split each year's change into the snowball effect and the primary balance and chart the debt path.
Buy the course once for $9.99 to unlock every lesson and lab, the final exam and the certificate – lifetime access, no subscription.
Lessons in this course
- Government Revenue & Spending by Category, as % of GDP Locked
- Primary vs Overall Budget Balance Locked
- Debt Dynamics: d(t) = d(t−1)·(1+r)/(1+g) − pb Locked
- The Debt-Stabilising Primary Surplus Locked
- Progressive Income Tax: Marginal vs Average Rates with a Bracket Table Locked
- Tax Buoyancy, Tax Elasticity & a Revenue Forecast Locked
- Public Investment Appraisal: Social NPV & the Discount Rate Locked
- Budget Variance Analysis & a Fiscal Rules Check Locked