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Micro Risks and Pareto Improving Policies

Author

Listed:
  • Mark Aguiar

    (Princeton University)

  • Manuel Amador

    (University of Minnesota)

  • Cristina Arellano

    (Federal Reserve Bank of Minneapolis)

Abstract

We provide sufficient conditions for the feasibility of robust Pareto-improving (RPI) fiscal policies when the risk-free interest rate on government bonds is below the growth rate (r

Suggested Citation

  • Mark Aguiar & Manuel Amador & Cristina Arellano, 2022. "Micro Risks and Pareto Improving Policies," Working Papers 2022-10, Princeton University. Economics Department..
    • Handle: RePEc:pri:econom:2022-10
    as

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    File URL: https://www.markaguiar.com/files/R_less_than_1_in_Aiyagari.pdf
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    References listed on IDEAS

    as
    1. Kimbrough, Kent P., 1986. "The optimum quantity of money rule in the theory of public finance," Journal of Monetary Economics, Elsevier, vol. 18(3), pages 277-284, November.
    2. Schmitt-Grohe, Stephanie & Uribe, Martin, 2004. "Optimal fiscal and monetary policy under imperfect competition," Journal of Macroeconomics, Elsevier, vol. 26(2), pages 183-209, June.
    3. Schmitt-Grohe, Stephanie & Uribe, Martin, 2004. "Optimal fiscal and monetary policy under sticky prices," Journal of Economic Theory, Elsevier, vol. 114(2), pages 198-230, February.
    4. Christian K. Wolf, 2021. "Interest Rate Cuts vs. Stimulus Payments: An Equivalence Result," NBER Working Papers 29193, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Government debt; Fiscal policy; Heterogeneous agents;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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