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We analyze the interest rate and savings effects of fiscal policy in an overlapping generations framework that … accommodates two observations: (1) The interest rate on consumption loans exceeds the rate of return to household savings. (2 … treatment of interest payments has powerful effects on capitals? marginal product and aggregate savings in life-cycle and …
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We analyze the interest rate and savings effects of fiscal policy in an overlapping generations framework that … accommodates two observations: (1) The interest rate on consumption loans exceeds the rate of return to household savings. (2 … treatment of interest payments has powerful effects on capitals? marginal product and aggregate savings in life-cycle and …
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