, deficit and monetary rules, both in effectiveness at curbing public spending and welfare for private agents. However …, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse … shocks, the optimal ceiling on U.S. federal revenue is about 15% of GDP, which leads to welfare gains for private agents …

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 introducing a fixed deficit regime … growth. Simulations of welfare effects indicate that a golden rule leads to highest welfare followed by a balanced budget and …

consumption should adhere to a balanced budget rather than a golden rule or a fixed deficit rule from a welfare point of view …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 …