TY  - GEN
AB  - We consider a general class of endogenous growth models with infinitely lived
households and analyze how different budgetary rules affect the stability of the econ-
omy. We show that a discretionary fiscal policy implies that the government always
violates its inter-temporal budget constraint along a balanced growth path, whereas
a balanced budget rule tends to stabilize the economy. A rule based debt policy
makes the economy converge to the balanced growth path provided the reaction of
the primary surplus to higher public debt is sufficiently large so that the debt to
GDP ratio becomes a mean-reverting process.
DA  - 2014
DO  - 10.4119/unibi/2915487
KW  - Public debt
KW  - inter-temporal budget constraint
KW  - budgetary rules
KW  - stability
KW  - endogenous growth
LA  - eng
PY  - 2014
SN  - 2196-2723
SP  - 15-
TI  - Government debt and aggregate stability with endogenous growth: Some general results
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29154876
Y2  - 2024-11-22T10:22:43
ER  -