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An Empirical Comparison of Interest and Growth Rates

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  • Julia, Knolle

Abstract

This paper investigates methods of assessing dynamic efficiency, points out their shortcomings and develops a new criterion of determining whether or not an economy accumulates too much capital. This criterion is then applied to the OECD countries as well as China. The analysis sheds a new light on recent proposals of raising public debt levels during a time of low interest rates.

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  • Julia, Knolle, 2014. "An Empirical Comparison of Interest and Growth Rates," MPRA Paper 59520, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:59520
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    References listed on IDEAS

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    Cited by:

    1. Stefan Homburg & Julia Knolle, 2017. "Das Rätsel der Niedrigzinsphase [The Conundrum of Low Interest Rates]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 97(4), pages 290-293, April.
    2. Kleczka, Mitja, 2015. "Monetary Policy, Fiscal Policy, and Secular Stagnation at the Zero Lower Bound. A View on the Eurozone," MPRA Paper 67228, University Library of Munich, Germany.
    3. Homburg Stefan, 2017. "Understanding Benign Liquidity Traps: The Case of Japan," German Economic Review, De Gruyter, vol. 18(3), pages 267-282, August.
    4. Attar, M. Aykut, 2021. "Growth, distribution and dynamic inefficiency in Turkey: An analysis of the naïve neoclassical theory of capital," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 20-30.
    5. Kevin Luo & Tomoko Kinugasa & Kai Kajitani, 2018. "Dynamic efficiency in world economy," Discussion Papers 1801, Graduate School of Economics, Kobe University.

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    More about this item

    Keywords

    Overaccumulation; dynamic efficiency; public debt; ponzi games; zero lower bound; WACC.;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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