Ni, Shawn; Wang, Xinghe - In: Canadian Journal of Economics 28 (1995) 4b, pp. 1120-34
This paper analyzes the effects of balanced-budgets and deficit-finance policies on the resulting steady-state capital stock in a simple neoclassical growth model. It is shown that the steady-state capital stock may be higher or lower if the government is required to balance its budget in each...