Fiscal rules are a frequent policy measure to restrict deficit-taking among incumbent politicians. In times of increased and sustained investment needs to mitigate the consequences of climate change, and to promote the digital and structural transformation, fiscal rules have become subject to...

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...

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...