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Golden Rule Fiscal Policy

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  • Heinz-Dieter Wenzel
  • Matthias Wrede

Abstract

In order to treat the problem of optimal growth of an aggregative economy, the goverment is introduced into the neo-classical growth model. The properties of the government's dynamic budget constraint are analyzed. Hence different kinds of government's policy requirements are taken into account Especially the effects of public investment are examined. A condition for dynamic stability is considered.

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Bibliographic Info

Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

Volume (Year): 129 (1993)
Issue (Month): II (June)
Pages: 123-150

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Handle: RePEc:ses:arsjes:1993-ii-2

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Cited by:
  1. Wenzel, Heinz-Dieter & Lackenbauer, Jörg & Brösamle, Klaus J., 2004. "Public Debt and the Future of the EU's Stability and Growth Pact," BERG Working Paper Series 50, Bamberg University, Bamberg Economic Research Group.
  2. Bersch, Julia, 2004. "AK-Modell mit Staatsverschuldung und fester Defizitquote," BERG Working Paper Series 48, Bamberg University, Bamberg Economic Research Group.

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