Fiscal Policy and the Nominal Term Premium

Distortionary income taxation in a standard New Keynesian model substantially increases the nominal term-premium on long-term bonds relative to a model with lumpsum taxes. Also the empirical level of the nominal term premium can be matched with lower risk-aversion coefficient in case of a model with income taxes relative to a model with long-run inflation risks.

MoreLess

Year of publication:	2013
Authors:	Kaszab, Lorant ; Marsal, Ales
Publisher:	Cardiff : Cardiff University, Cardiff Business School
Subject:	zero-coupon bond \| nominal term premium \| third-order approximation \| distortionary income taxation

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Series:	Cardiff Economics Working Papers ; E2013/13
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	77475821X [GVK] hdl:10419/109056 [Handle] RePEc:cdf:wpaper:2013/13 [RePEc]
Classification:	E13 - Neoclassical ; E31 - Price Level; Inflation; Deflation ; E43 - Determination of Interest Rates; Term Structure Interest Rates ; E44 - Financial Markets and the Macroeconomy ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation
Source:	EconStor

Persistent link: https://www.econbiz.de/10010504451