First, there is the question of whether a permanent increase in public investment induces a permanent, or merely a temporary, increase in economic growth. The traditional neoclassical growth model of Solow (1956) predicts that any positive effect of an increase in the national savings and...

This paper lays out a simple model for the purpose of bringing together the various strands of the analysis of fiscal policy in an optimizing , competitive equilibrium model. The discussion centers on the critic al assumptions lying behind the Ricardian equivalence proposition, th e role of the...

As a result of monetary stabilization in Ukraine, inflation dropped from over 10,000 percent per annum in 1993 to around 40 percent per annum in 1996. Concurrently, the level of seignorage, or inflation tax revenue, dropped from 13 percent of gross domestic output to around 1 percent of output....