IDEAS home Printed from https://ideas.repec.org/a/cup/macdyn/v30y2026ip-_24.html

Stimulating growth and welfare in the U.S

Author

Listed:
  • Malley, James Richard
  • Philippopoulos, Apostolis

Abstract

This paper examines how structural reforms can boost long-term growth and welfare in the U.S. economy. Using a model calibrated to historical data, we compare three reforms: reducing regulatory costs, increasing public investment, and eliminating rent-seeking. Our results show that all three improve welfare, but through different channels. Cutting regulatory burdens delivers quick efficiency gains with minimal adjustment costs. Raising public investment has the most substantial impact on growth and welfare, though it requires short-term trade-offs. Eliminating rent-seeking improves efficiency and leisure, but its growth effect is smaller. Overall, public investment emerges as the most powerful lever for growth, while regulatory simplification and institutional reform provide complementary benefits by reducing distortions, improving resource allocation, and reinforcing the efficiency gains from fiscal policy.

Suggested Citation

  • Malley, James Richard & Philippopoulos, Apostolis, 2026. "Stimulating growth and welfare in the U.S," Macroeconomic Dynamics, Cambridge University Press, vol. 30, pages 1-1, January.
    • Handle: RePEc:cup:macdyn:v:30:y:2026:i::p:-_24
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1365100526100960/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:macdyn:v:30:y:2026:i::p:-_24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/mdy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.