Topic
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.
Papers published on a yearly basis
Papers
More filters
01 Jan 2020
TL;DR: In this article, the Golden Rule under uncertainty, which accompanies every concept of Berge equilibrium (in particular, Berge equilibria), is discussed. But it is not discussed in this paper.
Abstract: As an English proverb goes, “Between the cup and lip a morsel may slip.” This chapter is devoted to the Golden Rule under uncertainty, which accompanies every concept of equilibrium (in particular, Berge equilibrium).
Posted Content•
TL;DR: In this article, a modified neoclassical growth model was proposed to explain the rise of the capital income share in the early and later part of the 19th century and in 1990-2010.
Abstract: The innovative approach presented introduces a modified neoclassical growth model which includes a new bias of technological progress in a quasi-endogenous growth model in which part of labor is used in the research & development sector. The combination of a macroeconomic production function and a new progress function, plus the assumption that the output elasticity of capital is positively influenced by the size of the R&D sector, sheds new light on innovation and growth as well as income inequality: Thus there is a new approach for explaining Piketty's historical findings of a medium term rise of the capital income share in industrialized countries – both in the earlier and later part of the 19th century and in 1990-2010.A rising share of capital income can be explained within this approach by the increase in the output elasticity of capital, which has been developed in a new way, namely in the context of R&D. In the approach presented herein, the golden rule issues are also highlighted and it is shown that choosing the right size of the R&D sector will bring about maximum sustainable per capita consumption. While the basic new model is presented for the case of a closed economy, one could easily accommodate both trade and foreign direct investment and thereby get a better understanding of complex international investment, trade and FDI dynamics – including with respect to the envisaged Transatlantic Trade and Investment Partnership.
Posted Content•
TL;DR: In this paper, a comparison of different fisca rules, i.e., the stability and growth Pact, the structural deficit rule and the golden rule, is made. And from comparing the economic stabilizing effects and their consistency with the monetaty policy, they conclude that the Pact is better in the case of a supply shock, and the gold rule is better for a demand shock.
Abstract: This papper proposes a comparison of EMU's different fisca rules, i.e. the stability and growth Pact, the structural deficit rule and the golden rule. From comparing the economic stabilizing effects and their consistency with the monetaty policy, it concludes that the Pact is better in the case of a supply shock, and the golden rule is better in the case of a demand shock