Chicago rule is shown to be the unique optimal monetary policy rule from the viewpoint of an intergenerational welfare-maximizing social planner. But, in the absence of commercial banking, it really mandates the elimination of the public sector, because it involves the elimination of central...

In this paper, we study the intertemporal equilibria of an infinite-lived representative agent model with public debt. We show that for a given path of government expenditures, there generally exist a continuum of equilibria depending on various debt policies.

L'objet de cet article est d'approfondir la question de la definition de la solvabilite de l'Etat. A la question, jusqu'ou l'Etat peut-il s'endetter ? Nous répondons que l'endettement public acceptable, ne conduisant pas à la faillite, est celui qui reste compatible avec un fonctionnement...

L'objet de cet article est d'approfondir la question de la definition de la solvabilite de l'Etat. A la question, jusqu'où l'Etat peut-il s'endetter ? nous repondons que l'endettement public acceptable, ne conduisant pas à la faillite, est celui qui reste compatible avec un fonctionnement...

In predicting the impact of policies on macroeconomic variables, the government must consider the effect of household fertility choices on demographic trends, as macroeconomic variables can be influenced by population scale. Therefore, this paper presents a comprehensive survey of existing...

This study advices on a suitable strategy for financing healthcare in Kenya as the sector faces challenges of underfunding with an increased demand of quality and availability of health care services that are equitable and affordable for a growing population.The study examines the effect of per...

This paper analyzes the macroeconomic and welfare effects of population aging and Social Security reform. First, a stochastic overlapping-generations model with heterogeneous agents is carefully extended to an aging society. The model uses the intermediate population projection of the Trustee...

Home equity is the most important part of a household portfolio, but only recently has it become more accessible through innovations in the mortgage market and financial deregulation. This study looks at the factors driving home equity withdrawal on a household level using Dutch survey data and...

This paper studies the equilibrium dynamics of an overlapping generations model with capital, money and cash-in-advance constraints. At each date the economy can experience two different regimes. In the first one the cash-in-advance constraint is binding and money is a dominated asset. In the...

The emergence of fiat money is studied in an environment in which exchange is organized around trading posts where many producers and shoppers are matched in a dynamic monopolistically competitive framework. Each household consumes a bundle of commodities and has a preference for consumption...