Golden Rule Fiscal Policy
Schweizerische Zeitschrift für Volkswirtschaft und Statistik / Revue Suisse d'Economie politique et de Statistique / Swiss Journal of Economics and Statistics, Volume 129, Issue 2, 1993, Pages 123-150
Abstract
In order to treat the problem of optimal growth of an aggregative economy, the goverment is introduced into the neo-classical growth model. The properties of the government''s dynamic budget constraint are analyzed. Hence different kinds of government''s policy requirements are taken into account Especially the effects of public investment are examined. A condition for dynamic stability is considered.