S. Ni, National debt, savings, and real interest rates in a neoclassical model with endogenous labour supply and knowledge-based growth, CAN J ECON, 32(5), 1999, pp. 1227-1244
Citations number
42
Categorie Soggetti
Economics
Journal title
CANADIAN JOURNAL OF ECONOMICS-REVUE CANADIENNE D ECONOMIQUE
In this paper the interest rate effect of government deficit financing in n
eoclassical model with endogenous labour supply and knowledge-based growth
is examined. it is shown that government deficits do not raise interest rat
es if consumption and leisure are good substitutes and there is a large spi
llover effect in knowledge creation.