This paper investigates the possibility of aggregate instability in an intertemporal competitive equilibrium when preferences are envious and fiscal policies including consumption taxes are Ramsey optimal. Indeterminacy emerges under the joint condition of catching-up-with-theJoneses preferences...

While gold is a volatile asset, it is often considered a safe haven that offers protection during bear markets. We study this safe haven hypothesis by analyzing a strategic allocation to gold for a loss averse investor with a 1-year evaluation horizon. A modest allocation to gold indeed helps to...

Across EU countries there is no general tendency for public investment to be crowded out by fiscal rules. The notion of investment in the public sector is different from the private sector, and it is problematic to base policy rules on the national account definition of investment. A Golden Rule...