economies that are dynamically efficient. In an overlapping-generations model with constant growth rate, g, of labor …-augmenting productivity, and with shocks to the durability of capital, we show that along a balanced growth path, the maximum sustainable … maximizes utility per capita along a balanced growth path and ensures that the economy is dynamically efficient …

economic growth. This paper examines the roles of three other factors: primary budget surpluses, surprise inflation, and pegged … a small amount of debt reduction has been achieved through growth rates that exceed undistorted interest rates …

adjustment to tax and expenditure shocks occurs primarily through mean-reversion in tax and expenditure growth, with a negligible …