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Default Risk Premia on Government Bonds in a Quantitative Macroeconomic Model

Juessen, Falko; Linnemann, Ludger; Schabert, Andreas - 2009

This paper examines the pricing of public debt in a quantitative macroeconomic model with government default risk. Default may occur due to a fiscal policy that does not preclude a Ponzi game. When a build-up of public debt makes this outcome inevitable, households stop lending such that the...

Persistent link: https://www.econbiz.de/10010325941

Debt Non-Neutrality, Policy Interactions, and Macroeconomic Stability

Linnemann, Ludger; Schabert, Andreas - 2005

, which justifies tight debt constraints. In particular, a balanced budget policy stabilizes the economy under cost …

Persistent link: https://www.econbiz.de/10010325313

Central Bank Instruments, Fiscal Policy Regimes, and the Requirements for Equilibrium Determinacy

Schabert, Andreas - 2006

This paper examines the role of the monetary instrument choice for local equilibrium determinacy under sticky prices and different fiscal policy regimes. Corresponding to Benhabib et al.'s (2001) results for interest rate feedback rules, the money growth rate should not rise by more than one for...

Persistent link: https://www.econbiz.de/10010325633

Distortionary taxation, debt, and the price level

Schabert, Andreas; von Thadden, Leopold - 2006

rates in an economy in which taxation is either lump-sum or distortionary. Under lump-sum taxation, we confirm the well …

Persistent link: https://www.econbiz.de/10011604623

Modeling Monetary Policy

Reynard, Samuel; Schabert, Andreas - 2009

We develop a macroeconomic framework where money issupplied against only few eligible securities in open marketoperations. The relationship between the policy rate,expected inflation and consumption growth is affected bymoney market conditions, i.e. the varying liquidity value ofeligible assets...

Persistent link: https://www.econbiz.de/10010325945

Economic effects of a nuclear-phase out policy: A CGE analysis

Bretschger, Lucas; Ramer, Roger; Zhang, Lin - 2012

The paper investigates the long-run consequences of a phase-out of nuclear energy for the Swiss economy. We apply the …. Consumer welfare decreases by 0.4% at the maximum compared to business as usual. Our results show that an economy can cope well … climate policy goals but rather accelerates the transition to a less energy-dependent economy. …

Persistent link: https://www.econbiz.de/10011753231

The dynamics of economic integration: Theory and policy

Bretschger, Lucas; Steger, Thomas M. - 2004

Integration a.ects economic growth mainly through two different channels : The scale-effect channel and the factor-reallocation channel. In order to investigate both channels within a unifying framework, we employ a simple descriptive growth model. The scale-effect channel increases either the...

Persistent link: https://www.econbiz.de/10011753097

Optimal Government Spending and Unemployment

Linnemann, Ludger; Schabert, Andreas - 2008

is contrasted with a reference policy which would be first best in a frictionless economy. Results are: the Ramsey policy …

Persistent link: https://www.econbiz.de/10010325681

Discretionary Policy, Multiple Equilibria, and Monetary Instruments

Schabert, Andreas - 2005

This paper examines monetary policy implementation in a sticky price model. The central bank's plan under discretionary optimization is entirely forward-looking and exhibits multiple equilibrium solutions if transactions frictions are not negligibly small. The central bank can then implement...

Persistent link: https://www.econbiz.de/10010325376

Optimal Central Bank Lending

Schabert, Andreas - 2010

We analyze optimal monetary policy in a sticky pricemodel where the central bank supplies money outrightvia asset purchases and lends money temporarily againstcollateral. The terms of central bank lending affect ra-tioning of money and impact on macroeconomic aggre-gates. The central bank can...

Persistent link: https://www.econbiz.de/10010325898