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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

Systematic Errors in Growth Expectations over the Business Cycle

Dovern, Jonas; Jannsen, Nils - Institut für Weltwirtschaft (IfW) - 2015

Using real-time data, we analyze how the systematic expectation errors of professional forecasters in 19 advanced economies depend on the state of the business cycle. Our results indicate that the general result that forecasters systematically overestimate output growth (across all countries)...

Persistent link: https://www.econbiz.de/10011208173

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

Secular stagnation

Bossone, Biagio - Institut für Weltwirtschaft (IfW) - 2014

This study analyzes the emergence of secular stagnation as the consequence of a rise in the preference for liquidity. Such a rise is caused by a persistent set of pessimistic expectations. This study also investigates the effectiveness of a broad range of demand-management policies in dealing...

Persistent link: https://www.econbiz.de/10011076235

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