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Growth, budget deficits, and fiscal policies in an overlapping generations model

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Abstract

Analyzing an overlapping generations model with growing endowments and a government sector that is permitted to have a budget deficit forces the real interest factor to deviate from Samuelson's biological interest factor. Fiscal policies then affect the real interest factor, which in turn has consequences both for the direction and the effectiveness of those fiscal policies. These consequences depend upon the borrowing position of the young.

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Author notes

  1. Jos Verbeek

    Present address: Tinbergen Institute, University of Amsterdam, Jodenbreestraat 23, NL-1011 NH, Amsterdam, The Netherlands

  2. Charles van Marrewijk

    Present address: Department of Economics H8-16, Erasmus University Rotterdam, P.O. Box 1738, NL-3000 DR, Rotterdam, The Netherlands

Authors and Affiliations

  1. Tinbergen Institute, University of Amsterdam, Jodenbreestraat 23, NL-1011 NH, Amsterdam, The Netherlands

    Charles van Marrewijk

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  1. Charles van Marrewijk
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  2. Jos Verbeek
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van Marrewijk, C., Verbeek, J. Growth, budget deficits, and fiscal policies in an overlapping generations model. Zeitschr. f. Nationalökonomie 53, 185–203 (1991). https://doi.org/10.1007/BF01227466

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  • DOI: https://doi.org/10.1007/BF01227466

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