Public debt/Addendum: Difference between revisions
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imported>Nick Gardner No edit summary |
imported>Nick Gardner No edit summary |
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{{subpages}} | {{subpages}} | ||
<small> | |||
:::ΔD = (D + F + Dr)/{Y(1 + r)} - D/Y | :::ΔD = (D + F + Dr)/{Y(1 + r)} - D/Y | ||
let 1/{Y(1 + g)} = A | let 1/{Y(1 + g)} = A | ||
then: | then: | ||
:::= A(D + F + Dr) - D/Y | :::= A(D + F + Dr) - D/Y | ||
| Line 9: | Line 10: | ||
substituting for A: | substituting for A: | ||
:::= {F + D(r - g)}/{Y(1 + g)} | :::= {F + D(r - g)}/{Y(1 + g)} | ||
or, approximately | or, approximately:- | ||
:::= {F + D(r - g) | :::= {F + D(r - g) | ||
:::= F/Y +(r - g)D/Y | :::= F/Y +(r - g)D/Y | ||
putting F/Y = f | putting F/Y = f and D/Y = d: | ||
:::= f + d(r - g) | :::= f + d(r - g) | ||
</small> | |||
Revision as of 17:58, 20 March 2009
- ΔD = (D + F + Dr)/{Y(1 + r)} - D/Y
let 1/{Y(1 + g)} = A
then:
- = A(D + F + Dr) - D/Y
- = A( D + F + Dr - D/AY)
- = A( D + F + Dr - D - Dg)
substituting for A:
- = {F + D(r - g)}/{Y(1 + g)}
or, approximately:-
- = {F + D(r - g)
- = F/Y +(r - g)D/Y
putting F/Y = f and D/Y = d:
- = f + d(r - g)