scholarly journals INCOME DISTRIBUTION BY AGE GROUP AND PRODUCTIVE BUBBLES

2020 ◽  
pp. 1-31
Author(s):  
Xavier Raurich ◽  
Thomas Seegmuller
Keyword(s):  
Fiscal Policy ◽  
Overlapping Generations ◽  
Consumption Smoothing ◽  
Age Group ◽  
Overlapping Generations Model ◽  
Aggregate Production ◽  
Speculative Bubbles ◽  
Intertemporal Consumption ◽  
Distribution Of Income

The aim of this paper is to study the role of the distribution of income by age group on the existence of speculative bubbles. A crucial question is whether this distribution may promote a bubble associated to a larger level of capital, that is a productive bubble. We address these issues in an overlapping generations model where agents live three periods and productive investment done in the first period of life is an illiquid investment whose return occurs in the following two periods. A bubble is a liquid speculative investment that facilitates intertemporal consumption smoothing. We show that the distribution of income by age group determines both the existence and the effect of bubbles on aggregate production. We also show that fiscal policy, by changing the distribution of income, may facilitate or prevent the existence of bubbles and may also modify the effect that bubbles have on aggregate production.

scholarly journals Bubble on real estate: the role of altruism and fiscal policy

2019 ◽  
Vol 23 (4) ◽  
Author(s):  
Lise Clain-Chamosset-Yvrard ◽  
Thomas Seegmuller
Keyword(s):  
Fiscal Policy ◽  
Real Estate ◽  
Portfolio Choice ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Physical Capital ◽  
Real Estate Bubble ◽  
Borrowing Constraint ◽  
Financial Market Imperfections

Abstract In this paper, we are interested in the interplay between real estate bubble, aggregate capital accumulation and taxation in an overlapping generations economy with altruistic households. We consider a three-period overlapping generations model with three key elements: altruism, portfolio choice, and financial market imperfections. Households realise different investment decisions in terms of asset at different periods of life, face a binding borrowing constraint and leave bequests to their children. We show that altruism plays a key role on the existence of a productive real estate bubble, i.e. a bubble in real estate raising physical capital stock and aggregate output. The key mechanism relies on the fact that a real estate bubble raises income of retired households. Because of higher bequests, there children are able to invest more in productive capital. Introducing fiscal policy, we show that raising real estate taxation dampens capital accumulation.

Evaluation of Fiscal Policy Effect of China’s Photovoltaic Industry

2018 ◽  
pp. 111-116 ◽  
Author(s):  
Gang AN ◽  
Hang WANG
Keyword(s):  
Fiscal Policy ◽  
Research And Development ◽  
Operating Performance ◽  
Fiscal Policies ◽  
Micro Data ◽  
Policy Effect ◽  
Policy Suggestions ◽  
Asset Size ◽  
The Empirical Analysis

To explore the role of fiscal policies in promoting the development of photovoltaic industry, the effects of financial subsidies on the development of China’s photovoltaic industry were analyzed by using the micro data of listed companies. The empirical analysis results in this study indicate that the fiscal policies represented by financial subsidies play a remarkable positive impetus function and financial subsidies are positively correlated with the operating performance of Photovoltaic enterprises. With larger the asset size and higher the Research and Development (R&D) investments, the operating performance of Photovoltaic enterprises is the better. Based on the above results, this study puts forward some policy suggestions on optimizing fiscal policy tools and further promoting the development of photovoltaic industry.

The role of emotions in the enhancement of performance in football for the 7 to 10 age group

2018 ◽  
Vol 19 (1) ◽  
pp. 23-27
Author(s):  
Gheorghe Dan Fetean ◽  
Gheorghe Monea ◽  
Florina-Emilia Grosu
Keyword(s):  
Age Group
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