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The subject of this paper is an analysis of the possibility of a government to influence the economic growth through a fiscal policy, in the extended framework o f a neoclassical model of economic growth (with the accumulation of human capital). This model implies no relation between social rates of investments in real and human capital and a long-term growth rate. It limits the possibility of potential stimulating of the rate of growth by economic authorities only to the transitory period, during which the economy moves from one balanced growth path to another. However, since the positive influence of the accelerated accumulation of capital on the level of the long-term growth path of the per capita product does not have to entail the increase of social welfare (measured by the level of social per capita consumption), we raise a question about the optimal structure of budget expenses in the division into public investments in real and human capital and consumption, corresponding to a given structure of private sector expenses. Next we reject the assumption about the exogenously given structure of expenses of private agents which means, inter alia, the absence of reaction of these agents to changes in the fiscal policy of the government. The endogenous derivation of the division of private incomes for investments and consumption from explicitly described preferences of agents over (per capita) consumption streams may lead to the conclusion suggesting total neutrality of the fiscal policy with regards to its influence on economic growth. At the last stage of the analysis we demonstrate that this conclusion is becoming relativised, depending on the extent to which private agents take into account the level of public consumption in their optimising decisions.

The subject of the paper is social welfare maximisation in a neoclassical model of economic growth, extended by the accumulation of human capital. After introducing the model and characterising the behaviour of the economic system on the so-called balanced growth path, Phelps’ “golden rule of accumulation” is used to establish the values of the rates of investments (into real and human capital) maximising the level o f the long-term growth path of per capita consumption. At the same time the analytical limitations o f this conception in the context of the welfare maximisation is shown. Overcoming those limitations necessitates a direct reference to the preferences of individual economic agents over (per capita) consumption streams. Realisation of this demand finds its formal expression in formulating and solving a dynamic optimisation problem, based on the initial growth model. Finally, this procedure serves to find the specific character o f preferences of individual agents, in the light of which the values of investment rates resulting from Phelps’ rule are the optimal values (on the balanced growth path), for the achievement of which, according to the model, the economy should strive.

This paper analyzes the relationship between growth opportunity measures and the future growth of companies. If there is a correlation between a company’s growth potential and its real growth, then the markets are more predictable and effective. The survey was conducted on the example of the following European markets: Austria, the Baltic Countries, Hungary, France, Poland, and Germany. The goal of this paper is to assess the relationship between growth opportunity measures and the future growth of companies listed on the stock exchanges of some markets in the European Union. The countries considered can be classified according to the size of the state, market liquidity, and the maturity of the exchange. Those external factors were expected to influence the strength of the growth and its opportunity relationship. It was found that growth opportunity measures based on market prices have predicting power for the future growth of companies. They are also strongly related to companies’ future growth in large countries and weakly related to future growth in small countries. This paper adds to the literature on the application of growth opportunity measures regarding market characteristics. These results are in line with the view that market liquidity should increase its efficiency in revealing the value of stocks and the Comprehensive Advantage of Large Countries hypothesis. Niniejszy artykuł analizuje związek między miarami możliwości rozwoju a przyszłym rozwojem firm. Jeśli istnieje korelacja między potencjałem wzrostu firmy a jej realnym wzrostem, rynki są bardziej przewidywalne i efektywne. Badanie zostało przeprowadzone na przykładzie następujących rynków europejskich: Austrii, krajów bałtyckich, Węgier, Francji, Polski i Niemiec. Celem artykułu jest ocena związku między miarami szans rozwojowych a przyszłym rozwojem spółek notowanych na giełdach niektórych rynków w Unii Europejskiej. Rozpatrywane kraje można sklasyfikować według wielkości państwa, płynności rynku i rozwoju rynku giełdowego. Oczekiwano, że te czynniki zewnętrzne wpłyną na siłę wzrostu. Stwierdzono, że miary możliwości wzrostu oparte na cenach rynkowych mają moc prognostyczną dla przyszłego rozwoju firm. Są one również silnie powiązane z przyszłym rozwojem firm w dużych krajach i słabo powiązane z przyszłym wzrostem w małych krajach. Niniejsze opracowanie uzupełnia literaturę na temat zastosowania miar szans wzrostu w odniesieniu do cech rynku. Uzyskane wyniki są zgodne z poglądem, że płynność rynku powinna zwiększać jego efektywność w ujawnianiu wartości akcji oraz z hipotezą wszechstronnej przewagi dużych krajów.