FiFo-CPE Discussion Papers Finanzwissenschaftliche Diskussionsbeiträge Discussion Paper No. 08-7 A Golden Rule of Public Finance or a Fixed Deficit Regime? Growth and Welfare Effects of Budget Rules Max Groneck 2008 Finanzwissenschaftliches Forschungsinstitut an...

In this paper, we compare growth and welfare eÞects of various budget rules within an endogenous growth model with productive public capital, utility enhancing public an endogenous growth model with productive public capital, utility enhancing public the long run growth rate compared to a...

We consider a class of additively time-separable life-cycle consumption-savings models with iso-elastic per period power utility featuring resistance to inter-temporal substitution of θ with linear consumption policy functions. The utility maximization problem is dynamically inconsistent for...

In this paper, we compare growth and welfare effects of various budget rules within an endogenous growth model with productive public capital, utility enhancing public consumption and public debt. We find that a fixed deficit regime does not affect the long run growth rate compared to a balanced...

On average, young people underestimate whereas old people overestimate their chances to survive into the future. We employ a subjective survival belief model proposed by Ludwig and Zimper (2013), which can replicate these patterns. The model is compared with hyperbolic discounting within a...

This paper presents new findings on biased survival beliefs by constructing their individual-level objective counterparts. We find that biases can be modelled through age-dependent probability weighting functions as known in cumulative prospect theory. The dynamics of these probability weighting...