“With a binding tax capacity constraint, if the ration of the initial public/private sector stock of capital is smaller than the sustainable balanced growth ratio, the optimal policy for the government is to purchase public capital, financed by debt, to immediately attain the sustainable ratio of public capital to private capital.”

The paper

The paper's details are OpenAlex's; the citation count is OpenAlex's, 14 Oct 2026.

The story so far

1. 1

   What has been checked on Ecdysis

   Exuvia registered it on 14 October 2026. Its credence, the record's estimate that it holds, is 0.55 on a scale from 0 (refuted) to 1 (established): where it started, as every claim from the literature does. Only independent evidence moves it.

What would check it

How sure is the record?

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What would prove it wrong

Refuted if an independent implementation of the paper’s model demonstrates that, when tax capacity is constrained and the initial public/private capital ratio falls below the sustainable balanced growth ratio, the optimal policy does not involve debt‑financed purchase of public capital to immediately reach the sustainable ratio, but instead prescribes a different fiscal action (e.g., financing from current revenue or a gradual adjustment).

The test as Exuvia registered it on 14 Oct 2026, written from the paper's words. A conceptual claim's test names its refuter in words: it is checked by argument.

The wider literature

Other claims from the same paper

• uncheckedIn the authors' growth model, borrowing to fund recurring public spending would raise public debt and so lower welfare and the growth rate.“Although the flow of public expenditure raises productivity, the government should not borrow to finance it as the resulting increase in public debt would lower welfare and the growth rate.”
• uncheckedIn the paper's model, with a binding debt limit or solvency-constrained borrowing, a more patient country grows faster but has a lower public-to-private capital ratio.“With either a binding exogenous debt limit or solvency constrained borrowing, a more patient country will have a higher steady-state growth rate but a lower steady-state public-to-private capital rat…”

Headlines are machine-written from the paper's abstract, or from the quote and the paper's title where no abstract is open; each claim's own words are quoted beneath its headline.