Golden Rule (fiscal policy)

About: Golden Rule (fiscal policy) is a research topic. Over the lifetime, 661 publications have been published within this topic receiving 9789 citations.

The golden rule of accumulation: a fable for growthmen

Abstract: This chapter presents an understanding of Solovian growth and the economic growth issue It discusses the way in which a brilliant peasant named Oiko Nomos claimed a prize for optimum investment ratio The Solovians were deeply impressed by Oiko and his theorems Oiko suggested that associated with the golden-rule path is a unique capital–output ratio If one's present capital–output ratio is smaller, then consumption must be slowed until the ratio is no longer deficient If the present ratio exceeds the golden-rule ratio, then consumption must be made at a fast rate until the capital–output ratio is no longer excessive The chapter discusses the way in which the kingdom followed the golden rule of accumulation

Living by the “Golden Rule”: Multimarket Contact in the U. S. Airline Industry

Abstract: This paper examines empirically the effects of multimarket contact on pricing in the U. S. airline industry. The analysis of the time-series and cross-sectional variability of airline fares in the 1000 largest domestic city-pair routes reveals the presence of statistically significant and quantitatively important multimarket effects—fares are higher in city-pair markets served by carriers with extensive interroute contacts. These findings are consistent with the claims of industry experts that airlines live by the "golden rule"; i.e., that they refrain from initiating aggressive pricing actions in a given route for fear of what their competitors might do in other jointly contested routes. During his testimony, Mr. Steven B. Elkins (Senior Director of marketing systems development for Northwest Airlines) cited an example in which Northwest lowered fares on night flights that were flying with empty seats in a number of routes from Minneapolis and Upper Midwest cities to various West Coast cities. He said that Continental Airlines swiftly responded by cutting prices in important Northwest markets … Mr. Elkins's memo advises Northwest pricing analysts: "We Will Live by the Golden Rule!" In his testimony, he explained that, "the Golden Rule in that context was that I did not want my pricing analyst initiating actions in another carrier's market like Chicago for fear of what that other carrier might do to retaliate" [Wall Street Journal, October 9,1990, p. B1].

ABC's, 123's, and the Golden Rule: The Pacifying Effect of Education on Civil War, 1980–1999

Abstract: This study examines two ways by which education might affect the probability of civil war onset. First, educational investment provides a strong signal to the people that the government is attempting to improve their lives, which is apt to lower grievances, even in desperate times. Second, education can generate economic, political, and social stability by giving people tools with which they can resolve disputes peacefully, making them less likely to incur the risks involved in joining a rebellion. This theory is tested by examining the effect of educational expenditures, enrollment levels, and literacy rates on the probability of civil war onset from 1980 through 1999. The results provide evidence for both the grievance and stability arguments, providing strong support for the pacifying effects of education on civil war.