Showing 1 - 10 of 118
This paper examines the interaction of real exchange rates and current account movements in open economies subject to monopolistic competition with sticky price-setting behavior and distortionary taxes. We find that the correlations between fiscal balances and the current account depend on the...
Persistent link: https://www.econbiz.de/10005106657
Enforcement of European fiscal rules, to a large extent, hinges on the fiscal forecasts prepared by the European Commission (EC). The reliability of these forecasts has received little attention in the literature, despite the fact that i) the forecasts have potentially far-reaching consequences...
Persistent link: https://www.econbiz.de/10011098670
This paper provides optimal labor and dividend income taxation in a general equilibrium model with oligopolistic competition and endogenous firms' entry. In the long run the optimal dividend income tax corrects for inefficient entry. The dividend income tax depends on the form of competition and...
Persistent link: https://www.econbiz.de/10010822705
This paper evaluates the cyclicality, inertia and effect of EU accession on fiscal policy in Central and Eastern Europe using a real time dataset. Budget balances are found to react in a stabilising way to economic activity, and they are less inert than is typically found in Western Europe....
Persistent link: https://www.econbiz.de/10004963329
This paper investigates the role of self-enforced national expenditure rules in limiting the expenditure bias and procyclical expenditure increases/decreases due to revenue windfalls/shortfalls. A simple model predicts that expenditure rules can have the intended effects, but only if the...
Persistent link: https://www.econbiz.de/10005101815
Using data for 17 OECD countries from 1983 to 2003, this paper establishes a non-linear relationship between private consumption and the level of government debt. In countries with a high level of government debt, a fiscal expansion is partly crowded out by a fall in private consumption. In...
Persistent link: https://www.econbiz.de/10005101851
The educational attainment of the Dutch labour force is lower than in neighbouring countries. Despite this worrying picture, and the fact that financial resources devoted to education are relatively small, it is argued that increasing public expenditure is not the obvious answer. As the social...
Persistent link: https://www.econbiz.de/10005106757
domestic activity, which leads to more foreign exports and, hence, higher foreign output. To quantify this, we combine a panel …
Persistent link: https://www.econbiz.de/10005021822
This paper re-assesses findings of the literature that the systematic debt stabilising response in fiscal policy has been sufficiently strong for keeping debt ratios on a sustainable path in Euro area countries. In doing so, it adjusts the standard approach to the specific context of Economic...
Persistent link: https://www.econbiz.de/10005021825
potential output or the structural budget. We find that the often commented upon pro-cyclicality of discretionary policy arises … output gap. …
Persistent link: https://www.econbiz.de/10005021848