Functional finance and intergenerational distribution in a Keynesian OLG model

by Skott, Peter, Ryoo, Soon

This paper examines the role of fiscal policy in the long run. We show that (i) dynamic inefficiency in a standard OLG model generates aggregate demand problems in a Keynesian setting, (ii) fiscal policy can be used to achieve full-employment growth, (iii) the required debt ratio is inversely related to both the growth rate and government consumption, and (iv) a simple and distributionally neutral tax scheme can maintain full employment in the face of variations in 'household confidence'.

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Year of publication:	[2015]
Authors:	Skott, Peter ; Ryoo, Soon
Publisher:	Amherst : Department of Economics, University of Massachusetts
Subject:	Public debt \| Keynesian OLG model \| secular stagnation \| structural liquidity trap \| dynamic efficiency \| confidence \| Overlapping Generations \| Overlapping generations \| Öffentliche Schulden \| Theorie \| Theory \| Keynesianismus \| Keynesian economics \| Neoklassische Synthese \| Neoclassical synthesis \| Liquiditätspräferenz \| Liquidity preference

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Extent:	1 Online-Ressource (circa 31 Seiten)
Series:	Economics Department working paper series. - Amherst, Mass., ZDB-ID 2407593-0. - Vol. 2015-13
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/174386 [Handle]
Classification:	E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; E22 - Capital; Investment (including Inventories); Capacity
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011522164