An Empirical Comparison of Interest and Growth Rates

Julia Knolle

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates methods of assessing dynamic efficiency, points out their shortcomings and develops a new criterion of determining whether or not an economy accumulates too much capital. This criterion is then applied to the OECD countries as well as China. The analysis sheds a new light on recent proposals of raising public debt levels during a time of low interest rates.

Keywords: Overaccumulation; dynamic efficiency; public debt; ponzi games; zero lower bound; WACC. (search for similar items in EconPapers)
JEL-codes: E22 E43 O47 (search for similar items in EconPapers)
Date: 2014-10
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://mpra.ub.uni-muenchen.de/59520/1/MPRA_paper_59520.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/59775/1/MPRA_paper_59520.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/60221/1/MPRA_paper_60221.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:59520

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