Classical Model Reveals Impact of Fiscal Policy on Wealth Distribution
The article explores how fiscal policy affects economic growth and wealth distribution in a two-class society of capitalists and workers. It discusses the impact of saving, debt, and pension systems on long-term growth, with a focus on both endogenous and exogenous growth models. The researchers analyze the dynamics of capital accumulation, wealth distribution, and government budget constraints in different scenarios. Key findings include the importance of understanding saving motives, the role of public debt in growth models, and the implications of pension systems on economic stability. The study highlights the complex interactions between fiscal policy, class structure, and long-term economic outcomes.