Impacts of Family Businesses on Economic Stability and Growth – An Optimization Approach
Abstract
Family businesses are an important factor for technological progress and high economic efficiency, determining a significant part of economic strength. At present, inside the European Monetary Union (EMU), there are efforts to reduce public debt to fulfill the criteria imposed by the Stability and Growth Pact (SGP), which are mandatory for members of the Euro zone. Due to these constraints, public expenditure has been cut in several European countries. In this paper, the economic implications for optimal budgetary stabilization under alternative rates of technological change are evaluated for Austria, in order to assess the importance of family businesses for stabilization policy and growth.
