A portfolio approach to endogenous growth: equilibrium and optimal policy |
| |
Authors: | Giancarlo Corsetti |
| |
Affiliation: | University of Rome III, Rome, Italy |
| |
Abstract: | This paper develops a portfolio approach to modeling endogenous growth in continuous time that is especially suitable for addressing fiscal and financial issues in policy design. The analysis focuses on the equilibrium relationship between fiscal and financial policy, rates of return and wealth allocation. We analyze two models. The first is based on the Arrow-Romer model with increasing returns and an external effect of capital on labor productivity. The second draws on Barro's analysis of government spending and endogenous growth. In both models, we study the equilibrium allocation and discuss the optimal fiscal and financial policy. |
| |
Keywords: | Endogenous growth Risk Asset pricing Optimal taxation |
本文献已被 ScienceDirect 等数据库收录! |