Secular Stagnation, Rational Bubbles and Fiscal Policy

C. N. Teulings ()

No 11149, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: It is well known that rational bubbles can be sustained in a dynamically inefficient economy, where the return to capital r is below the growth rate g. However, empirical evidence suggests that modern economies are most of the time on an efficient path with r>g. This paper shows that rational bubbles can be sustained when r

Keywords: Macro; Dynamic efficiency; Bubbles; Fiscal policy; Secular stagnation (search for similar items in EconPapers)
JEL-codes: E44 E62 (search for similar items in EconPapers)
Date: 2016-03
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Secular Stagnation, Rational Bubbles, and Fiscal Policy (2016)
Working Paper: Secular Stagnation, Rational Bubbles, and Fiscal Policy (2016)
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