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Closely following the seminal contribution of Jappelli and Pistaferri (2014) - based on Italian household survey data - we employ data of 22 European countries to assess the role of heterogeneity of the marginal propensity to consume (MPC) for fiscal policy in the Euro area. We document an...
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This paper explores the qualitative and quantitative implications of optimal taxation in a developing economy when … economic growth is endogenously determined. We differentiate this class of economies from a developed economy in two aspects … equilibrium allocations and Ramsey allocations in the context of a small open economy in which the interest rate is endogenously …
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response to the recession; (b) domestic political economy factors, notably the pressure to act against unemployment in the US …
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