Monte dei Paschi di Siena
vol.5 n.1-2

This essay deals with stabilization policy implications and steady-state growth conditiom for an economy with Government Owned Capital.

The basic structure of the analysis is given by a two sector growth modell in which a governmeilt expenditure for investment goods and a government share of the capital stock are introduced. The ana-lysisis-dividedintotwoparts.~iistw,egiveabriefpiesentationof che model in its static and dynamic version. Then, we try to investi-gate fiscal and monetary policies to stabilize the price-leve1 and/or its rate of change. Mainly the latter section is concerned with the interaction of a Government Investment Program with the steady-state conditions of the intensity of private capital and the rate of in- flation. The simulations performed try to outline the possibilities open to the Government by managing the policy variables we introduced and to test such a t001 in a more genera1 fiscal and monetary policy framework….continua a leggere

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