Debt-sharing and Secession: A Generational Accounting Approach

This paper investigates one of the most important financial issues arising from a secession or a country partitioning namely the sharing of the national public debt. Extending Drèze's distributive neutrality condition, we use the generational accounting technique and propose a dynamic debt-sharing criterion which takes into account both the true debt future generations inherit and their contributive capacity. The equivalence with Drèze's static rule is only obtained on the balanced growth path, and in the absence of initial regional debt. An application of our criterion to the Belgian case offers striking results.

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Document type	Article de périodique (Journal article) – Article de recherche
Publication date	2004
Language	Anglais
Journal information	"Regional Studies" - Vol. 38, no. 3, p. 293-303 (2004)
Peer reviewed	yes
Publisher	Routledge ((United Kingdom) Abingdon)
issn	0034-3404
e-issn	1360-0591
Publication status	Publié
Affiliations	European Commission - Taxation and Customs Union Directorate General University of Lille 2 - CADRE, IZA and IWEPS UCL - Autre
Keywords	Public Debt ; Secession ; Generational Accounting
Links	http://hdl.handle.net/2078/96571[Handle] https://doi.org/10.1080/003434042000211060[DOI]

See also
	[boreal:4092]	Debt-sharing and secession: A generational accounting approach