We analyze motivations for, and possible alternatives to, the Stability and Growth Pact (SGP). With regard to the …

-capita growth. The OLG model captures direct effects, working through adjustments in the savings rate, labor supply, and capital … politico-economic equilibrium. Growth is driven by capital accumulation and productivity increases fueled by public investment … to demographic ageing and per-capita growth to accelerate. If the retirement age were held constant, the growth rate in …

higher growth. Our analysis accommodates costly signaling for gaining credibility and also assigns a novel role to spending …