Dynamic inefficiency and fiscal interventions in an economy with land and transaction costs
| العنوان: | Dynamic inefficiency and fiscal interventions in an economy with land and transaction costs |
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| المؤلفون: | Martin Hellwig |
| المصدر: | German Economic Review. 23:21-60 |
| بيانات النشر: | Walter de Gruyter GmbH, 2021. |
| سنة النشر: | 2021 |
| مصطلحات موضوعية: | Transaction cost, Economics and Econometrics, Debt, media_common.quotation_subject, Fiat money, Pareto principle, Economics, Monetary economics, Asset (economics), Real interest rate, Inefficiency, media_common, Fiscal policy |
| الوصف: | The paper contributes to the discussion on whether real interest rates below real growth rates can be taken as evidence of dynamic inefficiency so that some fiscal intervention may be called for. A seemingly killing objection points to land, a non-produced durable asset in positive supply, as a reason why dynamic inefficiency can be ruled out. If real interest rates were expected to be below real growth rates forever, the value of land would be unbounded, which is incompatible with equilibrium. The paper shows that this objection is not robust to the presence of an arbitrarily small per-unit-of-value transaction cost. The paper also specifies fiscal interventions that provide for Pareto improvements even though they involve a resource cost. For the debate about public debt policy, the land argument is a red herring because it is incompatible with the presence of fiat money and debt denominated in units of fiat money. |
| تدمد: | 1468-0475 1465-6485 |
| الوصول الحر: | https://explore.openaire.eu/search/publication?articleId=doi_________::2e930688b4cb065cfd39e1278dd457bfTest https://doi.org/10.1515/ger-2020-0110Test |
| حقوق: | OPEN |
| رقم الانضمام: | edsair.doi...........2e930688b4cb065cfd39e1278dd457bf |
| قاعدة البيانات: | OpenAIRE |
| تدمد: | 14680475 14656485 |
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