On Government Deficits and Speculation
构建了一个包含代表性消费者和两家生产企业的动态随机一般均衡模型，分析政府支出、税收和货币融资对经济的影响，发现政府可以通过调整基本赤字来促进增长。
The authors consider a dynamic stochastic general equilibrium model with a representative consumer-investor and two producing firms. All the assets are real investments of capital into productive processes. Government expenditures, taxes, and money financing are explicitly incorporated. The holding of money is modeled through a cash-in-advance constraint. Fundamental budget deficits generated by flat rate expenditure and income tax rules can be financed by printing money or randomly levying temporary wealth taxes modeled as a Poisson process. Characterization and properties of the balanced-budget rational expectations equilibrium are analyzed. It is shown that government may promote growth by adjusting the fundamental deficit. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.