http://www.rssboard.org/rss-specification 720 Recent iber_burch_bcwp items https://escholarship.org/uc/iber_burch_bcwp/rss Recent eScholarship items from Burch Center Working Papers Wed, 26 Aug 2026 05:19:31 +0000 Optimal Long-Run Fiscal Policy: Constraints, Preferences and the Resolution of Uncertainty https://escholarship.org/uc/item/1qk92274 <p>We construct a computational dynamic stochastic overlapping generations general equilibrium model with uncertain lifetimes and explore the impact of policy stickiness (specifically, a major reform will preclude future reforms for a generation) on optimal long-run fiscal policy. Under such circumstances, entitlement reforms exhaust a valuable option to move in the future. We explore the conditions under which the gain to waiting is large enough to induce optimizing policymakers to delay reforming a suboptimal system. We also allow for the uncertainty to have ARCH characteristics and explore the impact of time-varying uncertainty on the optimality of delayed policy action.</p> https://escholarship.org/uc/item/1qk92274 Fri, 11 Oct 2002 00:00:00 +0000 Auerbach, Alan J. Hassett, Kevin A.