Overaccumulation, public debt, and the importance of land

In recent contributions, Weizsäcker (2014) and Summers (2014) maintain that mature economies accumulate too much capital. They suggest large and lasting public deficits as a remedy. This paper argues that overaccumulation cannot occur in an economy with land. It presents novel data of aggregate land values, analyzes the issue in a stochastic framework, and conducts an empirical test of overaccumulation.

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Year of publication:	2014
Authors:	Homburg, Stefan
Publisher:	Hannover : Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
Subject:	Dynamic efficiency \| overaccumulation \| land \| fiscal policy \| public debt

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Series:	Diskussionsbeitrag ; 525
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	782300480 [GVK] hdl:10419/96674 [Handle] RePEc:han:dpaper:dp-525 [RePEc]
Classification:	D9 - Intertemporal Choice and Growth ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H21 - Efficiency; Optimal Taxation
Source:	EconStor

Persistent link: https://www.econbiz.de/10010352205