@techreport{Groneck2008Golden,
abstract = {In this paper, we compare growth and welfare e\textcurrency{}ects 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 budget while the growth rate is increased by a golden rule. Welfare effects are ambiguous. Simulations indicate that economies populated by households who have a strong tendency to smooth consumption should adhere to a balanced budget rather than a golden rule or a fixed deficit rule from a welfare point of view.},
author = {Max Groneck},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E62; H63; O40; H50; H62; 330; Budget rules; golden rule of public finance; fiscal policy; endogenous growth; welfare; Finanzpolitik; Haushaltsdefizit; Regelgebundene Politik; Wirtschaftspolitische Wirkungsanalyse; Wirtschaftswachstum; Neue Wachstumstheorie; Wohlfahrtseffekt; Theorie},
language = {eng},
number = {08-7},
title = {A Golden Rule of Public Finance or a Fixed Deficit Regime? Growth and Welfare Effects of Budget Rules},
type = {Finanzwissenschaftliche Diskussionsbeitr\"{a}ge / Finanzwissenschaftliches Forschungsinstitut an der Universit\"{a}t zu K\"{o}ln},
url = {http://hdl.handle.net/10419/27680},
year = {2008}
}
