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Fiscal Consolidation in Europe: Pre- and Post-Maastricht

Kamps, Christophe - Institut für Weltwirtschaft (IfW) - 2001

Based on a panel data model this paper investigates whether the effects of fiscal policy on national saving in Europe … national saving responds nonlinearly to fiscal policy when a large and persistent consolidation is undertaken. I show that …

Persistent link: https://www.econbiz.de/10005700535

A case where Barro expectations are not rational

Schlicht, Ekkehart - Institut für Weltwirtschaft (IfW) - 2012

The paper generalizes Feldstein's criticism (Perceived Wealth in Bonds and Social Security, 1976) of Barro's analysis … (Are Government Bonds Real Net Wealth?, 1974) for the case that the interest rate exceeds the growth rate. This is done by … mode of taxation affects the present value of disposable income in the private sector. This violates their Barro …

Persistent link: https://www.econbiz.de/10009646513

The simple analytics of Helicopter money: Why it works - always

Buiter, Willem H. - Institut für Weltwirtschaft (IfW) - 2014

The authors provides a rigorous analysis of Milton Friedman's parable of the 'helicopter' drop of money - a permanent/irreversible increase in the nominal stock of fiat base money which respects the intertemporal budget constraint of the consolidated Central Bank and Treasury - the State....

Persistent link: https://www.econbiz.de/10010956044

Housing wealth isn't wealth

Buiter, Willem H. - Institut für Weltwirtschaft (IfW) - 2009

A fall in house prices due to a change in its fundamental value redistributes wealth from those long housing (for whom … used in the paper, there is no pure wealth effect on consumption from a change in house prices if this represents a change … in their fundamental value. There is a pure wealth effect on consumption from a change in house prices if this reflects a …

Persistent link: https://www.econbiz.de/10008561123

Fiscal Taylor Rules in the Postwar United States

Reicher, Christopher - Institut für Weltwirtschaft (IfW) - 2009

Recent research and events have brought fiscal policy back into the spotlight. Fiscal Taylor rules and error correction models have represented two different ways of quantifying the feedbacks from fiscal and economic conditions to fiscal policy decisions. This paper synthesizes these two ideas,...

Persistent link: https://www.econbiz.de/10005818814

A reappraisal of the inflation-unemployment tradeoff

Karanassou, Marika; Sala, Héctor; Snower, Dennis J. - Institut für Weltwirtschaft (IfW) - 2005

This paper offers a reappraisal of the inflation-unemployment tradeoff, based on ?frictional growth,? describing the interplay between nominal frictions and money growth. When the money supply grows in the presence of price inertia (due to staggered wage contracts with time discounting), the...

Persistent link: https://www.econbiz.de/10010955553

A Note on Human Capital and the Feldstein-Horioka Puzzle

Katsimi, Margarita; Moutos, Thomas - Institut für Weltwirtschaft (IfW) - 2007

view (i.e., including human capital) of investment and saving. We find that the Feldstein-Horioka result is impervious to …

Persistent link: https://www.econbiz.de/10005083333

Heterogeneous Parameter Uncertainty and the Timing of Investment during Crisis

Ni, Shawn; Ratti, Ronald A. - Institut für Weltwirtschaft (IfW) - 2009

We present a model in which investors observe the same macroeconomic data but have varying levels of information about the parameters that determine the distribution of the expected returns on investment. During a crisis that increases macroeconomic uncertainty and reduces asset prices, the...

Persistent link: https://www.econbiz.de/10005083349

Global Factors, Unemployment Adjustment and the Natural Rate

Smith, Ron P.; Zoega, Gylfi - Institut für Weltwirtschaft (IfW) - 2007

OECD unemployment rates show long swings which dominate shorter business cycle components and these long swings show a range of common patterns. Using a panel of 21 OECD countries 1960-2002, we estimate the common factor that drives unemployment by the first principal component. This factor has...

Persistent link: https://www.econbiz.de/10005083387

Debt deleveraging and business cycles: An agent-based perspective

Raberto, Marco; Teglio, Andrea; Cincotti, Silvano - Institut für Weltwirtschaft (IfW) - 2011

The recent financial crises pointed out the central role of public and private debt in modern economies. However, even if debt is a recurring topic in discussions about the current economic situation, economic modelling does not take into account debt as one of the crucial determinants of...

Persistent link: https://www.econbiz.de/10009246869