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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.


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Journal ArticleDOI
TL;DR: In this article, general conditions for the existence of two different types of cyclical equilibria are given in terms of the elasticities of demand for savings and for capital with respect to the interest rate and of the capital-consumption ratio at the golden rule steady state.

64 citations

Posted Content
TL;DR: The Golden Rule of capital accumulation in a Chakraborty-type economy, i.e. a two-period OLG economy where longevity is endogenous, is derived and it is shown that the capital per worker maximizing steady-state consumption per head is inferior to the Golden Rule capital level prevailing under exogenous longevity.
Abstract: This note derives the Golden Rule of capital accumulation in a Chakraborty-type economy, i.e. a two-period OLG economy where longevity is endogenous. It is shown that the capital per worker maximizing steady-state consumption per head is inferior to the Golden Rule capital level prevailing under exogenous longevity. We characterize also the Lifetime Golden Rule, that is, the capital per worker maximizing steady-state expected lifetime consumption per head, and show that this tends to exceed the standard Golden Rule capital level.

62 citations

Journal ArticleDOI
TL;DR: Bayraktar and Moreno-Dodson as mentioned in this paper showed that public spending, especially its core components, contributes to economic growth only in countries that are capable of using funds for productive purposes.
Abstract: Although many studies indicate that both the level and composition of public spending are significant for economic growth, the results in the empirical literature are still mixed. This note is based on a paper of the same title (Bayraktar and Moreno-Dodson 2010) that compares a set of fast-growing developing countries to a mix of developing countries with different growth patterns. Considering the full government budget constraint, the empirical analysis shows that public spending, especially its 'core' components, contributes to economic growth only in countries that are capable of using funds for productive purposes. In addition, those countries must have an adequate economic policy environment with macroeconomic stability, openness, and private sector investments that are conducive to growth.

59 citations

Journal ArticleDOI
01 Dec 1988
TL;DR: In this paper, the sustainability and optimality rules for government debt were derived within an intertemporal optimizing framework in which both capital and government debt are endogenous, driven by utility and profit-maximizing behavior of private agents and tax and expenditure policies of the government.
Abstract: The sustainability and optimality rules for government debt are derived within an intertemporal optimizing framework in which both capital and government debt are endogenous, driven by utility and profit-maximizing behavior of private agents and tax and expenditure policies of the government. The rules are expressed purely in terms of familiar economic parameters, and their ready applicability in an operational context is illustrated by instructive numerical examples. A discussion of the relationship between the optimality rule and the "golden rule" of savings in the literature is also provided.

58 citations


Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20218
202024
201922
201821
201733
201626