From Keynes to Solow to optimal growth: An encompassing model of monetary and fiscal policy
AbstractA dynamic, out-of-equilibrium model of aggregate demand and supply is specified. The existence of, and convergence to, a macroeconomic equilibrium is derived, and the existence of a supporting revealed social utility function is established. Empirical estimates for three recent historical 'eras' suggest the model's explanatory power is impressive. Implications for possible policy repercussions include striking shifts in effect.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 72 (2009)
Issue (Month): 2 (November)
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Web page: http://www.elsevier.com/locate/jebo
Growth Out-of-equilibrium Monetary and fiscal policy Revealed social preference;
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