Austerity, fiscal volatility, and economic growth

摘要: This paper contributes to the ongoing debate on relationship between austerity measures and economic growth. We propose a general equilibrium model where (i) agents have recursive preferences; (ii ) growth is endogenously driven by investments in RD (iii) government committed zero-deficit policy finances public expenditures means of combination labor taxes R&D taxes. find that rely reducing resources available sector depress both short- long-run. High debt EU members are currently implementing based higher and/or lower sector. casts some doubts real ability these countries grow over next years.