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Fiscal Policy, Debt Constraint and Expectation-Driven Volatility

Nishimura, Kazuo; Seegmuller, Thomas; Venditti, Alain - 2014

a constraint can however be a fundamental source of indeterminacy, and therefore, of expectation-driven fluctuations …

Persistent link: https://www.econbiz.de/10011096842

Indeterminacy and Sunspots in Two-Sector RBC Models with Generalized No-Income-Effect Preferences

Dufourt, Frédéric; Nishimura, Kazuo; Venditti, Alain - 2015

function of various structural parameters. We show that local indeterminacy occurs through flip and Hopf bifurcations for a …

Persistent link: https://www.econbiz.de/10011201567

Sunspot Fluctuations in Two-Sector Models: New Results with Additively-Separable Preferences

Dufourt, Frédéric; Nishimura, Kazuo; Venditti, Alain - 2015

We analyze local indeterminacy and sunspot-driven fluctuations in the standard two-sector model with additively … corresponding parameter space. We also show that local indeterminacy can be obtained under any labor supply elasticity or under an … arbitrarily low elasticity of intertemporal substitution in consumption. On the empirical side, we find that indeterminacy and …

Persistent link: https://www.econbiz.de/10011201568

Public Spending as a Source of Endogenous Business Cycles in a Ramsey Model with Many Agents

Nishimura, Kazuo; Nourry, Carine; Seegmuller, Thomas; … - 2013

We introduce public spending, financed through income taxation, in the Ramsey model with heterogeneous agents. Public spending as a source of welfare generates more complex dynamics. In contrast to previous contributions focusing on similar models but with wasteful public spending, limit cycles...

Persistent link: https://www.econbiz.de/10010900226

Indeterminacy and Sunspot Fluctuations in Two-Sector RBC models: Theory and Calibration

Dufourt, Frédéric; Nishimura, Kazuo; Venditti, Alain - 2013

indeterminacy occurs through flip and Hopf bifurcations for a large set of values of the elasticity of intertemporal substitution in … indeterminacy occurs through flip and Hopf bifurcations for any value of the elasticity of the labor supply, and can even be …

Persistent link: https://www.econbiz.de/10010900227

Aggregate Instability under Labor Income Taxation and Balanced-Budget Rules: Preferences Matter

Abad, Nicolas; Seegmuller, Thomas; Venditti, Alain - 2012

We investigate the role of preferences in the existence of expectation-driven instability under a balanced budget rule where government spendings are financed by a tax on labor income. Considering a one-sector neoclassical growth model with a large class of preferences, we find that...

Persistent link: https://www.econbiz.de/10010900262

On Stabilization Policy in Sunspot-Driven Oligopolistic Economies

Ferreira, Rodolphe Dos Santos; Dufourt, Frédéric - 2013

Economies with oligopolistic markets are prone to inefficient sunspot fluctuations triggered by autonomous changes in firms equilibrium conjectures. We show that a well designed taxation-subsidization scheme can eliminate these fluctuations by coordinating firms in each sector on a single...

Persistent link: https://www.econbiz.de/10010900268

The Stabilizing Virtues of Fiscal vs. Monetary Policy on Endogenous Bubble Fluctuations

Seegmuller, Thomas; Clain-Chamosset-Yvrard, Lise - 2013

We explore the existence of endogenous fluctuations with a rational bubble and the stabilizing role of fiscal and monetary policies. Consumers' credit constraints, the role of collateral and a portfolio choice are the key ingredients of our analysis. We consider an overlapping generations model...

Persistent link: https://www.econbiz.de/10010900272

Destabilizing Balanced-Budget Consumption Taxes in Multi-Sector Economies

Nishimura, Kazuo; Nourry, Carine; Seegmuller, Thomas; … - 2013

We examine the impact of balanced-budget consumption taxes on the existence of expectations-driven business cycles in two-sector economies with infinitely-lived households. We prove that, whatever the relative capital intensity difference across sectors, aggregate instability can occur if the...

Persistent link: https://www.econbiz.de/10010900293