We measure the amount of smoothing achieved through various components of the government deficit in Eu and OECD countries. For EU countries, at the 1-year frequency, 13 % of shocks to GDP are smoothed via government consumption, 18 percent via transfers, 5 % via subsidies, while taxes provide no...

This note presents a model in which pension funds, by holding a significant share of capital assets, can exert a non competitive behavior on labor market. This leads to lower wages and higher capital returns, and can reduce capital accumulation and long-run welfare.

In this paper, we consider the determinacy of equilibrium prices, interest rate and income in an economy with liquidity constraints and capital accumulation. In particular, we show that, even though no extrinsic uncertainty affects fundamentals, under some conditions, rational expectations...