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Risk Sharing in the Presence of a Public Good

Schroth, Josef - 2015

This paper studies an economy where agents can spend resources on consuming a private good and on funding a public good. There is asymmetric information regarding agents' relative preference for private versus public good consumption. I show how private good consumption should be coordinated...

Persistent link: https://www.econbiz.de/10011396705

Housework and fiscal expansions

Gnocchi, Stefano; Hauser, Daniela; Pappa, Evi - 2014

We build an otherwise-standard business cycle model with housework, calibrated consistently with data on time use, in order to discipline consumption-hours complementarity and relate its strength to the size of fiscal multipliers. We show that if substitutability between home and market goods is...

Persistent link: https://www.econbiz.de/10010420621

Uncertain fiscal consolidations

Bi, Huixin; Leeper, Eric M.; Leith, Campbell - 2013

The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition - either tax …

Persistent link: https://www.econbiz.de/10010319687

On fiscal multipliers: Estimates from a medium scale DSGE model

Zubairy, Sarah - 2010

small response of private consumption to increased government spending. The multipliers for labor and capital tax on impact … are 0.13 and 0.33, respectively. The effects of tax cuts, on the other hand, take time to build, and exceed the … stimulative effects of higher spending at horizons of 12-20 quarters. The expansionary effects of tax cuts are primarily driven by …

Persistent link: https://www.econbiz.de/10010279882

Time-consistent control in non-linear models

Ambler, Steve; Pelgrin, Florian - 2007

We show how to use optimal control theory to derive optimal time-consistent Markov-perfect government policies in nonlinear dynamic general equilibrium models, extending the result of Cohen and Michel (1988) for models with quadratic objective functions and linear dynamics. We replace private...

Persistent link: https://www.econbiz.de/10010279883

Sovereign default risk premia, fiscal limits and fiscal policy

Bi, Huixin - 2011

We develop a closed economy model to study the interactions among sovereign risk premia, fiscal limits, and fiscal policy. The stochastic fiscal limits, which measure the ability and willingness of the government to service its debt, arise endogenously from a dynamic Laffer curve. The...

Persistent link: https://www.econbiz.de/10010280044

Optimization in a simulation setting: Use of function approximation in debt strategy analysis

Bolder, David Jamieson; Rubin, Tiago - 2007

The stochastic simulation model suggested by Bolder (2003) for the analysis of the federal government's debt … nonetheless complicated by two challenges. First, performing optimization with traditional techniques in a simulation setting is … address a number of policy questions that could not be fully addressed with the current stochastic simulation engine. …

Persistent link: https://www.econbiz.de/10010279867