The goal of this article is to analyze the effects of fiscal pohcy on the steady state Abstract growth rate of an endogenous growth model, in which sustained per capita growth results from spillovers of investment in physical capital. In contrast to conventional models, however, it is assumed...

In this paper, we analyze the so-called AK endogenous growth model with persistent unemployment due to wage rigidities that result from labor market imperfections. We demonstrate that the existence of a balanced growth path implies that it is unique or that there exist two balanced growth paths,...

The paper argues that a process of capital accumulation exhibiting recurrent mass unemployment—due to the conflict over income distribution—does not represent a process that is adequate for a democratic society in the long run. The paper develops a basic macrodynamic framework where this...

We work out the mechanism that makes public debt affect the allocation of resources in the long-run. To do so we analyze an AK growth model with elastic labor supply and a government sector. The government levies a distortionary income tax and issues bonds to finance lump-sum transfers and...

This paper analyzes the public debt situation in Japan, Germany and the United States by reflecting their respective debt history and by analyzing whether the governments pursue a sustainable debt policy. Starting point of the analysis are theoretical considerations about conditions guaranteeing...