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, which justifies tight debt constraints. In particular, a balanced budget policy stabilizes the economy under cost …
Persistent link: https://www.econbiz.de/10014063135
We estimate the effect of government spending shocks on the US economy with a time-varying parameter vector … pattern of fiscal shock responses neither completely fits the predictions of the New Keynesian model of an economy subject to …
Persistent link: https://www.econbiz.de/10012912155
We estimate the effect of government spending shocks on the US economy with a time-varying parameter vector … pattern of fiscal shock responses neither completely fits the predictions of the New Keynesian model of an economy subject to …
Persistent link: https://www.econbiz.de/10011890166
Persistent link: https://www.econbiz.de/10003974395
, which justifies tight debt constraints. In particular, a balanced budget policy stabilizes the economy under cost …
Persistent link: https://www.econbiz.de/10011346485
Persistent link: https://www.econbiz.de/10003073173
Persistent link: https://www.econbiz.de/10000337152
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/10011379436
Persistent link: https://www.econbiz.de/10011558396
Persistent link: https://www.econbiz.de/10003913174