Metadatas
- ISIDORE Id: 10670/1.35aff1...
- halshs: halshs-00754571
- doi: 10.1111/j.1542-4774.2012.01097.x
- PRODINRA: 316603
- WOS: 000310728600001
This document is linked to :
info:eu-repo/semantics/altIdentifier/doi/10.1111/j.1542-4774.2012.01097.x
Keywords
Paradox of thrift coordination incomplete markets neutral fiscal policy E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E21 - Consumption • Saving • Wealth E - Macroeconomics and Monetary Economics/E.E1 - General Aggregative Models/E.E1.E12 - Keynes • Keynesian • Post-KeynesianSimilar subjects
Public markets Balancing (Physics) Balance (Physics) BalanceCite this document
Christophe Chamley, « A Paradox of Thrift in General Equilibrium Without Forward Markets », HALSHS : archive ouverte en Sciences de l’Homme et de la Société, ID : 10.1111/j.1542-4774.2012.01097.x
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Abstract
After 2008, the US personal saving rate had its strongest postwar jump, from 2% to 5%, and the investment ratio its sharpest fall from its postwar average of 16% to its lowest level of 12%. The coordination of saving and investment is analyzed here in a theoretical model of general equilibrium with rational expectations and no forward market. Shocks affect preferences for future consumption. A paradox of thrift is proven that formalizes an argument in the General Theory of Keynes but the equilibrium is a constrained Pareto optimum. Textbook fiscal policies are neutral at best, or inefficient.
