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Is the Political Business Cycle for Real?

Blomberg, S. Brock; Hess, Gregory D. - CESifo - 2001

This paper constructs and examines a macroeconomic model which combines features from both real and political business cycle models. We augment a standard real business cycle tax model by allowing for varying levels of government partisanship and competence in order to replicate two important...

Persistent link: https://www.econbiz.de/10005416501

How a Firm Can Induce Legislators to Adopt a Bad Policy

Dahm, Matthias; Dur, Robert; Glazer, Amihai - CESifo - 2012

This paper shows why a majority of legislators may vote for a policy that benefits a firm but harms all legislators. The firm may induce legislators to support the policy by suggesting that it is more likely to invest in a district whose voters or representative support the policy. In...

Persistent link: https://www.econbiz.de/10010544187

Credibility and Transparency of Central Banks: New Results Based on Ifo’s World Economicy Survey

Waller, Sandra; Haan, Jakob de - CESifo - 2004

This paper reports the results of a survey among private sector economists about credibility and transparency of … Survey to answer questions on the importance and determinants of credibility. The results of both surveys are very comparable …. Credibility is considered to be important to attain price stability at low cost, while the best ways to earn credibility are a …

Persistent link: https://www.econbiz.de/10005094291

Does Membership in International Organizations Increase Governments’ Credibility? Testing the Effects of Delegating Powers

Dreher, Axel; Voigt, Stefan - CESifo - 2008

This paper analyzes whether nation-state governments can increase their credibility by becoming members of … international organizations. Credibility is an important asset because it determines the real interest rate and is expected to have … organizations can improve the credibility of nation-state governments. This hypothesis is tested by introducing three new indicators …

Persistent link: https://www.econbiz.de/10005181427

Savers, Spenders and Fiscal Policy in a Small Open Economy

Matsen, Egil; Sveen, Tommy; Torvik, Ragnar - CESifo - 2005

This paper analyzes the effects of fiscal policy in an open economy. We extend the savers-spenders theory of Mankiw (2000) to a small open economy with endogenous labor supply. We first show how the Dornbusch (1983) consumption-based real interest rate for open economies is modified when labor...

Persistent link: https://www.econbiz.de/10005766098

Product Market Integration and Income Taxation: Distortions and Gains from Trade

Andersen, Torben; Sörensen, Allan - CESifo - 2007

It is widely perceived that globalization is a threat to tax financed public sector activities. The argument is that public activities (public consumption and transfers) financed by income taxes may distort labour markets and cause higher wages and thus a loss of competitiveness. If the...

Persistent link: https://www.econbiz.de/10005766145

Wide vs. Narrow Tax Bases under Optimal Investment Timing

Panteghini, Paolo - CESifo - 2004

This article compares an ACE system with a CBIT system in an open economy. Using a real-option approach we show that, if a firm can decide when to invest, a tradeoff is found. According to traditional wisdom, a high-income firm investing in an ACE system faces a heavier tax burden at each...

Persistent link: https://www.econbiz.de/10005766251

Profits, Markups and Entry: Fiscal Policy in an Open Economy

Coto-Martínez, Javier; Dixon, Huw D. - CESifo - 2001

In this paper we develop a general model of an imperfectly competitive small open economy. There is a traded and non-traded sector, whose outputs are combined in order to produce a single final good that can be either consumed or invested. We make general assumptions about preferences and...

Persistent link: https://www.econbiz.de/10005094394

External Constraints Matter for Privatizations

Petrarca, Ilaria; Ricciuti, Roberto - CESifo - 2014

We present an analysis of the share of public ownership in the product market in the OECD countries from 1974 to 2007. Despite much has been said on the broad topic of reforms and regulation, a sector-specific insight is missing. We replicate the analysis of Galasso (2014) by sector of activity...

Persistent link: https://www.econbiz.de/10010948843

Labour Market Reforms and Outcomes in Estonia

Brixiova, Zuzana; Egert, Balazs - CESifo - 2012

The unemployment rate in Estonia rose sharply in 2010 to one of the highest levels in the EU, after the country entered a severe recession in 2008. While the rate declined relatively rapidly in 2011, it remained high especially for the less educated. In 2009, the Employment Contract Law relaxed...

Persistent link: https://www.econbiz.de/10009653373