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Title: The US public debt problem
Authors: Yeo, Teck Wei
Cham, Taw Zheng
Barus, Ivan Louise
Keywords: DRNTU::Social sciences::Economic theory::Macroeconomics
Issue Date: 2013
Abstract: What are the factors that have contributed to the rise in US public debt over the past 30 years? Based on these factors, what are the implications for US public debt management? In this paper, we used the Government Budget Constraint (GBC) as an analytical framework to provide a qualitative analysis on the evolution of US public debt from 1980 to 2011. We identified the high level of defence spending as well as the persistent use of deficit financing to be the main factors leading to the rise in public debt. This proposition was later supported by the OLS regression results. In addition, our findings identified the rise in primary deficit ratio to be the most significant factor that led to the rise of public debt. As such, we recommend the US government to cut down on federal expenditure in specific sectors and conduct a tax reform to better manage its public debt.
Rights: Nanyang Technological University
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:HSS Student Reports (FYP/IA/PA/PI)

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