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Showing papers on "Golden Rule (fiscal policy) published in 2021"


Journal ArticleDOI
TL;DR: In this paper, the optimal policy exercise of a utilitarian government in a dynamically efficient economy with pension and education support obeying the Pareto criterion is carried out, and the authors find that expansion of one instrument along with the other emerges as the optimal response, however, once the complete market level of education is achieved, they suggest phasing pensions out.

10 citations


Journal ArticleDOI
TL;DR: The Golden Rule of ethics in its negative form states that you should not do to others what you would not want others to do to you as mentioned in this paper, while in its positive form it states that we should do to other humans as we would not wish to be done to ourselves.
Abstract: The Golden Rule of ethics in its negative form states that you should not do to others what you would not want others to do to you, and in its positive form states that you should do to others as y...

5 citations


Posted ContentDOI
TL;DR: In this article, the interaction between monetary and fiscal policies in a Ramsey-Sidrauski model augmented with environmental capital is studied through the Green Golden Rule, and the equilibrium solutions are studied through equilibrium solutions through the “Green Golden Rule.
Abstract: We study the interaction between monetary and fiscal policies in a Ramsey-Sidrauski model augmented with environmental capital. Equilibrium solutions are studied through the “Green Golden Rule”. Despite the non-separability of money in utility and intertemporally non-separable preferences, money is environmentally neutral. Policy impacts the environment via the marginal rate of transformation rather than the marginal rate of substitution between consumption and environment. Fiscal policies, lump sum and distortionary, under a balanced budget, are also environmentally non-neutral. Only under a non-balanced budget, when deficits are monetized, is money environmentally non-neutral. In alternative approaches (Cash-in-Advance, Transactions Costs), money is environmentally non-neutral.

5 citations


Journal ArticleDOI
TL;DR: In this paper, the authors defined the golden rule of material accumulation as confronting the ability of society to process materials as the benefit of the capital, with the physical investments, as the cost of the process and showed that there is no incentive present to reduce the material stock accumulation in the future under the current economic conditions, neither in emerging nor in developed countries.
Abstract: According to the key function of material stock, it constitutes valuable service infrastructure for society; however, it is also a driver for resource use, an object of technological lock-in, and a challenging waste management issue of the future. In this article, the golden rule of material accumulation is defined by confronting the ability of society to process materials–as the benefit of the capital, with the physical investments–as the cost of the process. Except for two countries with specific conditions (Japan and Switzerland), the level of assets in the analyzed economies performs under the golden rule quantity of capital per worker in material terms. Thus, there is no incentive present to reduce the material stock accumulation in the future under the current economic conditions, neither in emerging nor in developed countries.

3 citations


Journal ArticleDOI
Brayton Polka1
TL;DR: Wiebe as mentioned in this paper argues that there is substantial evidence for the existence of spirits in the human experience, and he supports his argument by using intuitive knowledge as evidence for their existence.
Abstract: In this study of spiritual experience as involving what he calls intuitive knowledge, Phillip Wiebe argues that there is substantial evidence for the existence of spirits. He supports his argument ...

Journal ArticleDOI
TL;DR: In this paper, the authors show that full annutization of all pensions saving is not socially optimal in a standard setting with fair annuities and dynamic efficiency, and that no full-annutization implies unintentional bequests and thus transfers from the old to the young.
Abstract: A seminal result Yaari holds that all pension savings should be in life-annuities. Annuities offer a higher return than standard assets and diversify mortality risk and therefore it is individually optimal to save in annuities only. This is a cornerstone result in the pensions literature where many attempts have been made to explain that individual savings in annuities is very low, the socalled annuity puzzle. But is the result that all pension savings should be in life-annuities also socially optimal? We show in a standard setting with fair annuities and dynamic efficiency that full annutization of all pensions saving is not socially optimal. Less than full annutization implies unintentional bequests and thus transfers from the old to the young, which is welfare improving under dynamic efficiency. Further, we show that no annutization can implement the Golden Rule capital stock level and analyse whether some annutization is socially optimal using a numerical analysis, which shows that it is the case under a wide range of parameter constellations.

Journal ArticleDOI
TL;DR: Fermis golden rule describes the decay dynamics of unstable quantum systems coupled to a reservoir, and predicts a linear decay in time Although it arises at relatively short times, the Fermi regi
Abstract: Fermis golden rule describes the decay dynamics of unstable quantum systems coupled to a reservoir, and predicts a linear decay in time Although it arises at relatively short times, the Fermi regi

Journal ArticleDOI
TL;DR: In this paper, the authors developed a model with overlapping generations of households, productive public and private capital, and a golden rule of fiscal policy aimed at maximizing economic growth, and found that a waning fertility rate, coming through a weaker preference for having children, increased longevity, a decrease in subjective discounting or lower financial support for child rearing, will require a policy intervention to ensure convergence to the growth maximizing debt level.
Abstract: This paper develops a model with overlapping generations of households, productive public and private capital, and a golden rule of fiscal policy aimed at maximizing economic growth. Studying the transitional dynamics between steady states triggered by different exogenous shocks, we find that a waning fertility rate, coming through a weaker preference for having children, increased longevity, a decrease in subjective discounting or lower financial support for child rearing, will require a policy intervention to ensure convergence to the growth maximizing debt level. A simple calibration exercise shows that when faced with projected demographic aging the adjustments in public debt and public investment required for keeping the economy at its maximum steady state growth rate may be small.