TY  - GEN
AB  - With this paper our objective is to study the effects of different deficit policies in
an endogenous growth model with publicly funded human capital accumulation and
public debt, where we allow for heterogeneous households. Two types of households
are considered. One household acquires human capital or skills through education
while the other household remains low-skilled. Aggregate production is given by a
function with physical capital and labor as input factors, where total labor input
is modeled by a CES function with high-skilled and low-skilled labor as arguments.
The government can run into debt, but, the primary surplus is a positive function
of public debt which guarantees that public debt is sustainable. We study the
characteristics and stability of the steady state and we investigate the effects of
fiscal policy with regard to long-run growth and the distribution of welfare of the
two households. Further, we analyze growth and welfare effects of switching from
a balanced government budget to permanent public deficits taking into account
transition dynamics.
DA  - 2021
DO  - 10.4119/unibi/2956884
KW  - Human capital
KW  - heterogeneous agents
KW  - distribution
KW  - endogenous economic growth
KW  - fiscal policy
KW  - sustainable public debt
LA  - eng
PY  - 2021
SN  - 2196-2723
SP  - 45-
TI  - Human capital formation with heterogeneous agents, sustainable debt policies and growth: Who benefits from fiscal policy rules?
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29568842
Y2  - 2024-11-22T08:27:28
ER  -