This chapter surveys intergenerational altruism in neoclassical growth models. It first examines Barro's approach to intergenerational altruism, whereby successive generations are linked by recursive altruistic preferences. Individuals have an altruistic concern only for their children, who in...

This chapter presents MAMS (Maquette for MDG Simulations), a recursive-dynamic CGE model developed at the World Bank for analysis of medium- to long-run country strategies for low- and middle-income countries, including strategies aimed at improving MDG (Millennium Development Goals) outcomes....

Im Jahr 2020 publizierte das Bundesfinanzministerium den 5. Tragfähigkeitsbericht zur Staatsverschuldung in Deutschland für den Zeitraum bis 2060. Ausgangspunkt ist die zutreffende Erkenntnis, dass die von der Alterung der Gesellschaft abhängigen Kostensteigerungen auf lange Sicht über der...

This paper shows that important insights for fiscal policy can be derived from Joseph Schumpeter's academic work. This concerns his fundamental distinction between theories in which the monetary sphere is identical with the real sphere ("real analysis"), and theories in which financial sphere is...

Long shunned as slow and ill timed, the response to the Covid-19 pandemic initiated a reassessment of fiscal policy as stabilisation tool. At the same time, there is ample evidence that major economic downturns produce lasting effects on real GDP in spite of active fiscal policy interventions....

Ensuring fiscal sustainability in the Member States of the European Union has become an extremely important goal in the current economic context. The formulation of appropriate policies can lead to fiscal consolidation, and the manifestation of a fiscal shock with direct implications on national...

This paper studies how investment tax incentives stimulate output in an estimated medium-scale dynamic stochastic general equilibrium model. We find that the horizon following a positive shock to investment tax incentives is crucial. The shock is highly expansionary in the long run, with the...

The objective of this paper is to propose an analytical framework to examine the foundations of the theory of efficient growth. The theory of efficient growth is a newly developed theory based on the principles of the neoclassical framework. It argues that an economy grows efficiently under two...

The euro area, like many other advanced economies, has entered an era of drastic demographic change. Without appropriate policy responses, population ageing in the euro area is posing formidable challenges for potential growth, monetary policy and public finances. This paper examines - from a...