A Paradox of Thrift in General Equilibrium Without Forward Markets
Christophe Chamley
(1, 2, 3)
Christophe Chamley
- Fonction : Auteur
- PersonId : 1373011
Résumé
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.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
A Paradox of Thrift in General Equilibrium Without Forward Markets
|
Résumé |
en
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.
|
Auteur(s) |
Christophe Chamley
1, 2, 3
1
PSE -
Paris-Jourdan Sciences Economiques
( 139754 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
3
BU -
Boston University [Boston]
( 63395 )
- One Silber Way, Boston, MA 02215
- États-Unis
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Nom de la revue |
|
Audience |
Non spécifiée
|
Date de publication |
2012-12
|
Volume |
10
|
Page/Identifiant |
1015-1035
|
Numéro |
6
|
Public visé |
Scientifique
|
Sous-type de document pour les Articles |
Research article
|
Voir aussi |
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Financement |
|
Indexation contrôlée |
|
Mots-clés |
en
Paradox of thrift, coordination, incomplete markets
fr
neutral fiscal policy
|
DOI | 10.1111/j.1542-4774.2012.01097.x |
ProdINRA | 316603 |
UT key WOS | 000310728600001 |
Loading...