Fiscal policies and the terms of trade in an endogenous growth model with overlapping generations

Iannis A. Mourmouras, Sugata Ghosh

    Research output: Contribution to journalArticle

    Abstract

    The paper investigates how changes in fiscal policy can affect relative prices, composition of private consumption, growth and welfare in a two-country, overlapping generations model of endogenous growth. We develop a simple framework that combines Blanchard-type consumers with uncertain lifetimes with an endogenous growth model à la Romer, in which there are production externalities from the capital stock of other firms at home and abroad. The basic insight is to highlight, within an optimizing set-up, the growth and terms of trade effects of fiscal policies, with emphasis on welfare considerations.

    Original languageEnglish
    Pages (from-to)445-470
    Number of pages26
    JournalJournal of Macroeconomics
    Volume22
    Issue number3
    Publication statusPublished - Jun 2000

    Fingerprint

    Fiscal policy
    Endogenous growth model
    Terms of trade
    Overlapping generations
    Capital stock
    Endogenous growth
    Production externalities
    Relative prices
    Consumption growth
    Uncertain lifetime
    Private consumption
    Overlapping generations model

    Cite this

    Mourmouras, Iannis A. ; Ghosh, Sugata. / Fiscal policies and the terms of trade in an endogenous growth model with overlapping generations. In: Journal of Macroeconomics. 2000 ; Vol. 22, No. 3. pp. 445-470.
    @article{70516ea106c94fd0a161291260618a95,
    title = "Fiscal policies and the terms of trade in an endogenous growth model with overlapping generations",
    abstract = "The paper investigates how changes in fiscal policy can affect relative prices, composition of private consumption, growth and welfare in a two-country, overlapping generations model of endogenous growth. We develop a simple framework that combines Blanchard-type consumers with uncertain lifetimes with an endogenous growth model {\`a} la Romer, in which there are production externalities from the capital stock of other firms at home and abroad. The basic insight is to highlight, within an optimizing set-up, the growth and terms of trade effects of fiscal policies, with emphasis on welfare considerations.",
    author = "Mourmouras, {Iannis A.} and Sugata Ghosh",
    year = "2000",
    month = "6",
    language = "English",
    volume = "22",
    pages = "445--470",
    journal = "Journal of Macroeconomics",
    issn = "0164-0704",
    publisher = "Elsevier",
    number = "3",

    }

    Fiscal policies and the terms of trade in an endogenous growth model with overlapping generations. / Mourmouras, Iannis A.; Ghosh, Sugata.

    In: Journal of Macroeconomics, Vol. 22, No. 3, 06.2000, p. 445-470.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Fiscal policies and the terms of trade in an endogenous growth model with overlapping generations

    AU - Mourmouras, Iannis A.

    AU - Ghosh, Sugata

    PY - 2000/6

    Y1 - 2000/6

    N2 - The paper investigates how changes in fiscal policy can affect relative prices, composition of private consumption, growth and welfare in a two-country, overlapping generations model of endogenous growth. We develop a simple framework that combines Blanchard-type consumers with uncertain lifetimes with an endogenous growth model à la Romer, in which there are production externalities from the capital stock of other firms at home and abroad. The basic insight is to highlight, within an optimizing set-up, the growth and terms of trade effects of fiscal policies, with emphasis on welfare considerations.

    AB - The paper investigates how changes in fiscal policy can affect relative prices, composition of private consumption, growth and welfare in a two-country, overlapping generations model of endogenous growth. We develop a simple framework that combines Blanchard-type consumers with uncertain lifetimes with an endogenous growth model à la Romer, in which there are production externalities from the capital stock of other firms at home and abroad. The basic insight is to highlight, within an optimizing set-up, the growth and terms of trade effects of fiscal policies, with emphasis on welfare considerations.

    UR - http://www.scopus.com/inward/record.url?scp=0034373824&partnerID=8YFLogxK

    M3 - Article

    VL - 22

    SP - 445

    EP - 470

    JO - Journal of Macroeconomics

    JF - Journal of Macroeconomics

    SN - 0164-0704

    IS - 3

    ER -