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- W51362310 abstract "In sections 1 and 2, we started from the premise that private agents optimize within an infinite horizon. In the current section, instead, we postulate that it is the government who does the optimization. In full analogy to section 1, the short-run equilibrium can be encapsulated in a system of seven equations:$$y={{k}^{alpha }}$$(1)$$r=alpha y/k$$(2)$$overset{centerdot }{mathop{k}},=y-c-nk$$(3)$$overset{centerdot }{mathop{c}},=(r-n-rho )c$$(4)$$c=(1-s)(1+b)y$$(5)$$overset{centerdot }{mathop{d}},=by-nd$$(6)$$by+t(y+rd)=gy+rd$$(7)Here α,ρ,c, d, g, k, n and s are exogenous, whereas b, ċ, (overset{centerdot }{mathop{d}},), (overset{centerdot }{mathop{k}},), k, r, s, t and y are endogenous. As compared to section 1, the sole difference is that here the saving ratio is given, while the government optimizes the deficit ratio dynamically." @default.
- W51362310 created "2016-06-24" @default.
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- W51362310 date "1995-01-01" @default.
- W51362310 modified "2023-09-27" @default.
- W51362310 title "Optimal Deficit Ratio" @default.
- W51362310 doi "https://doi.org/10.1007/978-3-642-46965-7_13" @default.
- W51362310 hasPublicationYear "1995" @default.
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