Showing 1 - 10 of 15
This paper outlines some issues regarding the interaction of independent fiscal authorities and one central bank in the European monetary union.It points out the possibilities for coordination failures,ranging everywhere from potentially excessive deficits and free-riding problems to...
Persistent link: https://www.econbiz.de/10011092175
:5, and that a surprise tax increase has a contractionary effect on output, consumption and investment.Our results differ from … shock is not, that government spending shocks crowd out both residential and on-residential investment but do not reduce … consumption, that a deficit spending cut stimulates the economy for the first 4 quarters but has a low median multiplier of 0 …
Persistent link: https://www.econbiz.de/10011092709
The replacement of national currencies by a common currency in the EMU causes a monetary externality if the European Central Bank is inclined to monetize part of outstanding government debt in the community.High government debt in one part of the EU then increases the common inflation rate.We...
Persistent link: https://www.econbiz.de/10011092899
asymmetric, fiscal policy flexibility is limited, goods markets adjust sluggishly, labour mobility is low and automatic …
Persistent link: https://www.econbiz.de/10011092163
Persistent link: https://www.econbiz.de/10011092588
capital mobility.Public investment and a public consumption good are financed by a source-based capital-income tax. By … comparing the cases in which countries do and do not coordinate their fiscal policies, it follows that spending on investment ….Coordination of only investment policy decreases the inefficiency of that policy, but it increases the inefficiency of noncoordinated …
Persistent link: https://www.econbiz.de/10011092601
bridge this gap between theory and data with term saving, households' savings for large forecastable expenditures. Household … data indicate that term saving is widespread. Once incorporated into a calibrated precautionary savings model, it generates … saving and raises the marginal propensity to consume by shortening the effective planning horizon. …
Persistent link: https://www.econbiz.de/10011193658
This paper develops a model of search on the labour market with training. The model reveals how the tax system can restore the social optimum if the Hosios condition is not satisfied in the private equilibrium. Furthermore, the effects are explored of a second-best reform from average to...
Persistent link: https://www.econbiz.de/10011090283
We study the dynamic output and welfare effects of public infrastructure investment under a balanced budget fiscal rule …, using an overlapping generations model of a small open economy. The government finances public investment by employing … distortionary labor taxes. We find a negative short-run output multiplier, which (in absolute terms) exceeds the positive long …
Persistent link: https://www.econbiz.de/10011090750
The paper studies the dynamic output effects of public infrastructure investment in a small open economy. We develop an … overlapping generations model that includes a production externality of public capital and a wealth effect on labor supply. Public … conventional results obtained from hysteretic models, we find non-monotonic output dynamics of a public investment impulse in the …
Persistent link: https://www.econbiz.de/10011090760