Showing papers on "Golden Rule (fiscal policy) published in 1995"
Posted Content•
TL;DR: In this article, the authors introduce a growth model with environmental assets as a source of utility and an input to consumption and production, and develop the Green Golden Rule, a generalization of the golden rule of neoclassical growth theory.
Abstract: We introduce a growth model with environmental assets as a source of utility and an input to consumption and production. In this model we develop the Green Golden Rule, a generalization of the golden rule of neoclassical growth theory. We apply this to the ease where the object it the maximization of long-run or limiting utility rather than long-run consumption.
135 citations
TL;DR: In this paper, the authors introduce a growth model with environmental assets as a source of utility and an input to consumption and production, and develop the Green Golden Rule, a generalization of the golden rule of neoclassical growth theory for the case where the object is the maximization of long run or limiting utility rather than long run consumption.
123 citations
TL;DR: In this article, the authors studied the equilibria of a simple overlapping generations model of pure exchange in which money is traded and there is a continuum of agents in each generation and population growth is endogenous via voluntary decisions on children.
Abstract: The present paper studies the equilibria of a simple overlapping generations model of pure exchange in which money is traded. There is a continuum of agents in each generation and population growth is endogenous via voluntary decisions on children. Any monetary steady state has to satisfy the “golden rule” that the interest rate equals the growth rate. Still such a monetary steady state may be inefficient. If raising children is not excessively profitable, then there exists a transfer scheme, in favor of those who raise children, which improves upon the steady state.
9 citations
TL;DR: The authors examined whether Korea's constant price saving rate is an optimal level and showed that it falls short of the optimal saving rate by 5-7 percentage points when technical progress, adjustment costs of capital, accumulation of human capital, and equipment investment are fully considered.
6 citations
01 Jan 1995
TL;DR: Economy and Interest as mentioned in this paper was the result of an intense effort of reflexion pursued by Maurice Allais on economic theory after the publication in 1943 of the work first entiteld ‘In search of an economic discipline' which later became the Treatise on Pure Economics.
Abstract: Economy and Interest1 published in 1947, was the result of an intense effort of reflexion pursued by Maurice Allais on economic theory after the publication in 1943 of the work first entiteld ‘In search of an economic discipline’ which later became the Treatise on Pure Economics2.
4 citations
Journal Article•
3 citations
Posted Content•
TL;DR: In this paper, the authors developed an example where persistent deterministic business cycles with perfect foresight cannot emerge when introducing restrictions on the distribution of demand behavior, such that households react heterogeneously to changes in the real expected interest rate and the expected real income.
Abstract: This paper develops an example where persistent deterministic business cycles with perfect foresight cannot emerge when introducing restrictions on the distribution of demand behavior. The distributional assumptions require that demand functions are very different in between households such the households react heterogeneously to changes in the real expected interest rate and the expected real income. Individual rationality plays a minor role. These distributional requirement sguarantee, furthermore, that the unique stationary temporary equilibrium, referred in the literature by the golden rule stationary state, is globally unstable. When households do no longer have perfect foresight but revise their expectation following a fixed process, the stability property of the stationary state might be reversed. This well known result has been obtained in the literature of business cycles by restricting household expectation functions. By opposite, this result is obtained, here, for arbitrary household expectation rules. The restriction is imposed on the support of the distribution. It is required that household expectation functions are different among households in the sense that household react heterogeneously to current and past price changes.
1 citations