Public Debt and Public Investment in an Endogenous Growth Model with Real Wage Rigidities

2009 ◽  
Author(s):  
Alfred Greiner ◽  
Peter Flaschel
Keyword(s):  
Endogenous Growth ◽  
Growth Model ◽  
Public Debt ◽  
Real Wage ◽  
Public Investment ◽  
Endogenous Growth Model

scholarly journals DYNAMIC ANALYSIS OF REDUCTIONS IN PUBLIC DEBT IN AN ENDOGENOUS GROWTH MODEL WITH PUBLIC CAPITAL

2016 ◽  
Vol 21 (6) ◽  
pp. 1454-1483 ◽  
Author(s):  
Noritaka Maebayashi ◽  
Takeo Hori ◽  
Koichi Futagami
Keyword(s):  
Endogenous Growth ◽  
Growth Model ◽  
Public Investment ◽  
Public Capital ◽  
Government Debt ◽  
The European Union ◽  
Fiscal Consolidation ◽  
Growth Pact ◽  
Endogenous Growth Model ◽  
The Government

We construct an endogenous growth model that includes productive public capital and government debt. We assume that the government debt-to-GDP ratio is gradually adjusted to a target level, reflecting the permanent commitment rules in the Stability and Growth Pact or the Maastricht Treaty in the European Union (i.e., the well-known 60% rule). These rules affect government borrowing and public investment. Here, we examine the welfare implications of the permanent commitment rules. We find that fiscal consolidation based on the rules improves social welfare. Moreover, the improvement in welfare accelerates as fiscal consolidation progresses more rapidly. Last, we also discuss and derive the optimal long-run debt-to-GDP ratio.

ENDOGENOUS GROWTH MODEL WITH HUMAN CAPITAL ON THE CIRCLE

2020 ◽  
pp. 4-9
Author(s):  
А.В. Королев
Keyword(s):  
Human Capital ◽  
Spatial Structure ◽  
Endogenous Growth ◽  
Explicit Form ◽  
Growth Model ◽  
Main Attention ◽  
Endogenous Growth Model ◽  
Central Plan ◽  
Special Case

В статье рассматривается модель эндогенного роста с человеческим капи-талом на простой пространственной структуре (окружности). Особое вни-мание уделено специальному случаю - комбинации параметров, при кото-рой удаётся получить решение задачи центрального планировщика на окружности в явном виде, что другим авторам не удавалось. In this article the endogenous growth model with human capital on the simple spatial structure (the circle) is considered. We pay main attention to a special case of a combination of parameters for which we were able to solve the central plan-ner problem on the circle in an explicit form, which other authors did not suc-ceed to do.

Sign in / Sign up

Export Citation Format

Share Document