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Micro Risks and Pareto Improving Policies

Author

Listed:
  • Mark Aguiar

    (Princeton University)

  • Manuel Amador

    (University of Minnesota)

  • Cristina Arellano

    (Federal Reserve Bank of Minneapolis)

Abstract

We provide sufficient conditions for the feasibility of robust Pareto-improving (RPI) fiscal policies when the risk-free interest rate on government bonds is below the growth rate (r

Suggested Citation

  • Mark Aguiar & Manuel Amador & Cristina Arellano, 2022. "Micro Risks and Pareto Improving Policies," Working Papers 2022-10, Princeton University. Economics Department..
    • Handle: RePEc:pri:econom:2022-10
    as

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    File URL: https://www.markaguiar.com/files/R_less_than_1_in_Aiyagari.pdf
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    References listed on IDEAS

    as
    1. Schmitt-Grohe, Stephanie & Uribe, Martin, 2004. "Optimal fiscal and monetary policy under sticky prices," Journal of Economic Theory, Elsevier, vol. 114(2), pages 198-230, February.
    2. Schmitt-Grohe, Stephanie & Uribe, Martin, 2004. "Optimal fiscal and monetary policy under imperfect competition," Journal of Macroeconomics, Elsevier, vol. 26(2), pages 183-209, June.
    3. Kimbrough, Kent P., 1986. "The optimum quantity of money rule in the theory of public finance," Journal of Monetary Economics, Elsevier, vol. 18(3), pages 277-284, November.
    4. Christian K. Wolf, 2021. "Interest Rate Cuts vs. Stimulus Payments: An Equivalence Result," NBER Working Papers 29193, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Government debt; Fiscal policy; Heterogeneous agents;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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