Fiscal sustainability and financial stability

2015 Fiscal Year Final Research Report

• Project/Area Number: 24530377
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Public finance/Monetary economics
• Research Institution: Kinki University
• Principal Investigator: TAMAI Toshiki 近畿大学, 経済学部, 准教授 (00456584)
• Project Period (FY): 2012-04-01 – 2016-03-31
• Keywords: 財政の維持可能性 / 財政政策 / 金融政策

Outline of Final Research Achievements

This study analyzes fiscal sustainability and stability of financial markets. The theoretical analysis shows that the golden rule of public finance enables actualizing the first-best equilibrium. A criteria to evaluate the dynamic efficiency of public investment is also provided. Numerical analysis shows that the first-best equilibrium has been actualized in the UK economy, and might be applicable to Germany and Japan when the golden rule was active.

Free Research Field

公共経済学