Reply to Feldstein and Buchanan

摘要: Feldstein's comment deals with my conclusion that government debt (and social security) will not add to net wealth in a model operative intergenerational transfers (either from old young or old). He accepts this the case of static economy, but argues it is incorrect when economy growing. It important distinguish two cases-the first which growth rate, g (the sum population and real income per head), below steady-state (real) rate return, r; second where > r.1 The straightforward turns out require no modifications previous results. contrary result an error calculating present values future tax liabilities. both more interesting difficult, I some analysis below.