Tax Burden, defined as the ratio of total tax revenues over personal income, is prominently used to summarize state tax policy. We analyze the empirical relationship between changes in Tax Burden and changes in state tax policy from 1987 to 2000 – as measured by states’ own forecasts of the...

Reference: Challenge, January/February, 1979

In the financial crisis literature, it is usually argued that, contrary to the case of currency crises, building a time series index to identify banking crisis episodes is highly difficult, particularly because of the lack of reliable data on banking sector variables (non-performing loans,...

National and local “economic development programs” – programs that provide assistance to individual businesses with tax or financial subsidies, or special public services, in order to increase local jobs or improve local businesses’ competitiveness – have become prominent and...

We postulate a new method of identifying debt which we call Debt Burden (DB). We claim that DB reveals the true debt obligations of the fiscal authority. It is more accurate and transparent. Hence, DB would serve fiscal authority much better in policy making. It is powerful in a sense that it is...

The main objective of this paper is to study the relationship between external public debt and equilibrium real exchange rate in developing countries. Using a extension of Obstfeld & Rogoff (1995) model we show that debt overhang tend to appreciate real exchange rate in the long run (Krugman...

The windfall acquisition of precious metals from American mines and the military revolution of the Early Modern age allowed the Spanish monarchs to command large amounts of credit andpursue an expansive imperial policy unlike that of any other Early Modern nation; when the costof the Empire...

El tema de la inflación ha sido uno de los más debatidos en los últimos meses. Los incrementos de precios registrados en el primer trimestre de 2005 han avivado la discusión. Este trabajo muestra que el problema está lejos de estar fuera de control y que determinadas medidas de política...

This paper examines, in the context of future EMU membership of the Central and Eastern European countiries (CEECs), the interaction between fiscal policy and the price level in different exchange rate regimes. The theoretical framework is based on the Fiscal Theory of the Price Level (FTPL)....