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Transmission of Government Spending Shocks in the Euro Area: Time Variation and Driving Forces

Kirchner, Markus; Cimadomo, Jacopo; Hauptmeier, Sebastian - Tinbergen Institute - 2010

, our results indicate that higher government debt-to-GDP ratios have negatively affected long-term multipliers. …

Persistent link: https://www.econbiz.de/10008838616

Coordination Frictions and The Financial Crisis

Gautier, Pieter A. - Tinbergen Institute - 2009

In this note I argue that the desirability of fiscal policy in response to the current crisis depends on whether one views the current crisis as a temporary deviation from a unique equilibrium or as a bad equilibrium out of multiple equilibria. The paper presents a simple Diamond (1982) type of...

Persistent link: https://www.econbiz.de/10005209434

Input versus Output Taxation in an Experimental International Economy

Riedl, Arno; Winden, Frans van - Tinbergen Institute - 2003

This paper is concerned with a policy oriented macroeconomic experiment involving an 'international' economy with a relatively small 'home' country and a large 'foreign' country. It compares the economic performance of two alternative tax systems as a means to finance unemployment benefits: a...

Persistent link: https://www.econbiz.de/10005144436

Default Risk Premia on Government Bonds in a Quantitative Macroeconomic Model

Juessen, Falko; Linnemann, Ludger; Schabert, Andreas - Tinbergen Institute - 2009

This paper examines the pricing of public debt in a quantitative macroeconomic model with government default risk …. Default may occur due to a fiscal policy that does not preclude a Ponzi game. When a build-up of public debt makes this … public bonds. Sovereign default risk premia turn out to emerge at either very high debt to output ratios, or if the variance …

Persistent link: https://www.econbiz.de/10008513214

Enhanced Cooperation in an Asymmetric Model of Tax Competition

Vrijburg, Hendrik; Mooij, Ruud A. de - Tinbergen Institute - 2010

This paper analyzes enhanced cooperation agreements in corporate taxation in a three country tax competition model where countries differ in size. We characterize equilibrium tax rates and the optimal tax responses due to the formation of an enhanced cooperation agreement. Conditions for...

Persistent link: https://www.econbiz.de/10008513231

The Effect of Fiscal Rules on Public Investment if Budget Deficits are Politically Motivated

Dur, Robert A.J.; Peletier, Ben D.; Swank, Otto H. - Tinbergen Institute - 1997

. As a solution to this problem, economists have proposed to impose a binding debt rule. In this paper we argue that a … binding debt rule does not eliminate the distortions due to strategic behaviour of politicians. Rather, strategic manipulation … shifts from public debt to public investment. As an alternative, we examine the effects of a capital borrowing rule which …

Persistent link: https://www.econbiz.de/10005137082

Productive Government Expenditure in Monetary Business Cycle Models

Linnemann, Ludger; Schabert, Andreas - Tinbergen Institute - 2005

are partially financed by public debt, unit labor costs fall in response to a fiscal expansion, such that inflation tends …

Persistent link: https://www.econbiz.de/10005137177

Optimal Government Spending and Unemployment

Linnemann, Ludger; Schabert, Andreas - Tinbergen Institute - 2008

We study optimal government spending in a business cycle model with frictional unemployment. The Ramsey optimal policy is contrasted with a reference policy which would be first best in a frictionless economy. Results are: the Ramsey policy i) implies a higher steady state ratio of government...

Persistent link: https://www.econbiz.de/10005137301

Does the Wage Tax System cause Budget Deficits?

Riedl, Arno; Winden, Frans A.A.M. van - Tinbergen Institute - 2000

In this paper we investigate experimentally the functioning of a wage tax financed unemployment benefit system on the development of the budget deficit, unemployment, and some other indicators of economic performance in an international economy. We find support for the hypothesis that...

Persistent link: https://www.econbiz.de/10005450715

Time Series Models with a Common Stochastic Variance for Analysing Economic Time Series

Koopman, Siem Jan; Bos, Charles S. - Tinbergen Institute - 2002

The linear Gaussian state space model for which the common variance is treated as a stochastic time-varying variable is considered for the modelling of economic time series. The focus of this paper is on the simultaneous estimation of parameters related to the stochastic processes of the mean...

Persistent link: https://www.econbiz.de/10005209436