The Empirical Evidence Indicates That Most OECD Countries Are Far

question 25

Essay

The empirical evidence indicates that most OECD countries are far below their golden- rule level of capital. What are the practical limitations of raising the saving rate closer to the golden- rule level? How close to the golden rule should governments try to get? Why?

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Definitions:

Economic Theory

A framework of principles and models that explains how economies operate and how economic agents interact.

Special Interest Groups

Organizations or associations focused on promoting the interests of their members, often through lobbying or advocacy.

Widely Dispersed Groups

Collections of individuals or entities spread across a large geographic area or various sectors, often making coordination or communication challenging.

Political Support

The backing or endorsement given to a political figure, party, or policy by individuals, groups, or other entities.