capital stock and a fall in employment. Cutting public employment or the income tax rate leads, in contrast, to a lower wage …, a higher interest rate and a higher capital stock. Employment rises on impact. If the extra revenues of rolling back the …

This note presents a model in which pension funds, by holding a signifiant share of capital assets, can exert a non … competitive behavior on labor market. This leads to lower wages and higher capital returns, and can reduce capital accumulation …

near zero and discounting is arbitrarily mild, long run capital and consumption may be arbitrarily close to zero with … general version of the model, we outline sufficient conditions under which capital and consumption are bounded away from zero … lower bound on long run consumption (independent of initial capital). These conditions require the expected marginal …