higher growth. Our analysis accommodates costly signalling for gaining credibility and also assigns a novel role to spending …

sovereign is not a reliable measure of austerity suffered; and that austerity may actually be associated with higher growth. Our …

-capita growth. The OLG model captures direct effects, working through adjustments in the savings rate, labor supply, and capital … politico-economic equilibrium. Growth is driven by capital accumulation and productivity increases fueled by public investment … to demographic ageing and per-capita growth to accelerate. If the retirement age were held constant, the growth rate in …

higher growth. Our analysis accommodates costly signaling for gaining credibility and also assigns a novel role to spending …