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 and the open economy

Abstract: This paper examines the factors which determine the volume of consumption per capita in a small open economy in the long run. The analysis is based on a neoclassical model. It is proved that-in general — Phelps' ‘golden rule of accumulation’ does not hold for an open economy. This conclusion follows from the decline in the terms of trade, which is generated in an open economy by an increase in the share of investment. The influence of labour supply and world expenditure on the consumption per capita also depend heavily on the induced change in the terms of trade. The analytical results of the model are illustrated by means of a few numerical examples.

Savings and Investment, from the Price Mechanism to the Multiplier

Abstract: Henry George often argued in macroeconomic terms, though he did not develop a macroeconomic theory. In this chapter we present a model that is consistent with Marshall’s ‘supply and demand’, but applies to aggregate supply and demand. The model is based on a conventional short-period production function, which shows the outputs associated with various levels of both fixed plant and equipment employment. As the economy employs craft technology, returns diminish to additional employment. Then, wages support consumption, Kalecki-fashion investment generates realized profits, and the level of employment is found when we know the real wage and level of investment (at the point where the C + I line is tangent to the production function, so the real wage equals the marginal product). This system can be developed into a simple growth model, based on the “Golden Rule” that the rate of profit equals the rate of growth, replacing the misguided Solow model.

Greening the Neoclassical Optimal Economic Growth Model

Abstract: A no-arbitrage rule of consumption and a golden rule of capital accumulation are derived under the assumptions that the satisfaction from consumption is spoiled by environmental degradation caused by industrialisation but moderated by cleaning up and greening operations.

Reply to Obesity and aggressive prostate cancer and the golden rule: Do not do to others what you do not want done to yourself

Abstract: 2321 Cancer May 15, 2020 until 11 years of follow-up (ie, level I evidence showing that the effect of PSA screening increases over time), we would not expect the 2012 USPSTF recommendations to have affected mortality over our study period from 2010 to 2015. Therefore, longer term follow-up will be needed to evaluate and make conclusions about survival outcomes in response to 2012 recommendations; nonetheless, we would like to take this opportunity to again emphasize that an increase in metastatic prostate cancer does have other important public health ramifications as discussed in our report, including “greater disease morbidity (e.g. metastatic bone pain, skeletal related events) and ... greater treatment-related toxicity—most notably from lifelong hormonal therapy—and higher overall health care costs.” We also strongly agree with Takahashi’s comments supporting the importance of shared decision making, as outlined by the updated 2018 USPSTF PSA screening recommendations. Our Surveillance, Epidemiology, and End Results–based study (noting that the Surveillance, Epidemiology, and End Results database remains the definitive source of population-based incidence data within the United States) along with, we believe, the editorial comment by Joshi and Filson was meant not to contradict or criticize these 2018 recommendations but rather to assess the population-based effects of the 2012 USPSTF grade D PSA screening recommendations in hopes of offering new data that might serve to enrich individual patient-physician discussions and support knowledgeable shared decision making for the complex topic of PSA screening in the future.

Governing European Union To Financial Stability

Abstract: In the last four years, a significant part of the European Union members has recorded a real decline in the sustainability of their public debt. The failure of Greece, Italy, Belgium or Spain to easily find funding at previous interest rates has induced the fear that the European Monetary Union would disintegrate. Such as scenario is not realistic because does not take into account the economic interdependencies that have been created between the countries participating at the monetary zone. Nevertheless, we can say that the Stability and Growth Pact which aimed towards the coordination of national fiscal policies for ensuring the stability and prudence of the budgetary climate, has failed. This failure was primarily due to the lack of specific sanctions for those members that have not fought against the fiscal imbalances and secondly to the stopping the steps forward towards a common fiscal policy. Thus, we can say that the European Monetary Union is driven now by the wrong rule of “no taxation with representation”. For these reasons, this paper aims at showing that the European fiscal federalism is still far away from becoming reality and that the new instruments chosen for the new stability of the European Monetary Union will be the task of the Member States themselves. This paper will also review the main rules that are projected to be the source for the future European financial stability and growth: the balanced budgets and the deficits built only on the “Golden Rule” premises, for which other amendments on European Treaties are expected.