Japan’s government is heavily indebted, and the current net debt tends to increase. This paper uses an extended lifecycle general equilibrium model with endogenous fertility to investigate an optimal size of government debt from two viewpoints: individual welfare and future demographic...

Human capital is deemed as the first-order determinant of firm innovation. , in a transitional background such as China, financial constraints might drive the relation between human capital and innovations. We thus examine how financial constraints affect firm innovation in China. The evidence...