Showing 1 - 5 of 5
We re-examine the optimality of tax smoothing from the point of view of frictional labor markets. Our central result is that whether or not this cornerstone optimal fiscal policy prescription carries over to an environment with labor market frictions depends crucially on the cyclical nature of...
Persistent link: https://www.econbiz.de/10005368229
A simple stochastic equilibrium structure is used to study the implications of monetary and fiscal policy interactions for government intertemporal budget balance. Existence and uniqueness of monetary equilibria are shown to depend on parameters of policy rules. The paper derives closed form...
Persistent link: https://www.econbiz.de/10005498780
Heterogeneity between unemployed and employed individuals matters for optimal fiscal policy. This paper considers the consequences of welfare heterogeneity between these two groups for the determination of optimal capital and labor income taxes in a model with matching frictions in the labor...
Persistent link: https://www.econbiz.de/10005368396
According to conventional wisdom, if deficits are inflationary then current deficits should predict subsequent movements in money growth. This paper USES a general equilibrium model fit to data to: (1) explore the policy behavior underlying this accepted viewpoint; (2) examine alternative...
Persistent link: https://www.econbiz.de/10005712657
and estimates the impact of R&D tax incentives on R&D expenditures at the U.S. state level. Identifying tax variation …
Persistent link: https://www.econbiz.de/10011095295