Overaccumulation, Public Debt and the Importance of Land

type="main" xml:id="geer12053-abs-0001"> <title type="main">Abstract</title> <p>In recent contributions, von Weizsäcker (2014) and Summers (2014) maintain that mature economies accumulate too much capital. They suggest large and lasting public deficits as a remedy. This study argues that overaccumulation cannot occur in an economy with land. It presents novel data of aggregate land values, analyzes the issue within a stochastic framework and conducts an empirical test of overaccumulation.