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Uninsurable investment risks and capital income taxation

Meh, Césaire A.; Terajima, Yaz - 2009

-accumulation of capital may result compared to the complete markets economy. We show that reducing somewhat the capital income tax … rate increases the capital stock and leads to a welfare gain. The complete elimination of the capital income tax, however …

Persistent link: https://www.econbiz.de/10010279941

Housing and tax policy

Alpanda, Sami; Zubairy, Sarah - 2013

In this paper, we investigate the effects of housing-related tax policy measures on macroeconomic aggregates using a …-occupied housing. Using our model, we analyze the effects of changes in housing-related tax policy measures on the level of output, tax … revenue and household debt, along with other macroeconomic aggregates. The tax policies we consider are (i) increasing …

Persistent link: https://www.econbiz.de/10010335678

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

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

Analyzing fiscal sustainability

Bi, Huixin; Leeper, Eric M. - 2013

The authors study the implications of fiscal policy behaviour for sovereign risk in a framework that determines a country's fiscal limit, the point at which, for economic or political reasons, taxes and spending can no longer adjust to stabilize debt. A real business cycle model maps the...

Persistent link: https://www.econbiz.de/10010319662

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

Addressing Household Indebtedness: Monetary, Fiscal or Macroprudential Policy?

Alpanda, Sami; Zubairy, Sarah - 2014

In this paper, we build a dynamic stochastic general-equilibrium model with housing and household debt, and compare the effectiveness of monetary policy, housing-related fiscal policy, and macroprudential regulations in reducing household indebtedness. The model features long-term fixed-rate...

Persistent link: https://www.econbiz.de/10011396672

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