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This paper develops a medium-scale dynamic, stochastic, general equilibrium (DSGE) model for fiscal policy simulations. Relative to existing models of this type, our model incorporates a two-country monetary union structure, which makes it well suited to simulate fiscal measures by relatively...
Persistent link: https://www.econbiz.de/10012991064
In a New Keynesian DSGE model with non-Ricardian consumers, we show that automatic stabilization according to a countercyclical spending rule following the idea of the debt brake is well suited both to steer the economy and in terms of welfare. In particular, the adjustment account set up to...
Persistent link: https://www.econbiz.de/10012991012
proposed that governments running a deficit should be forced to generate additional tax revenue. We show that this deficit …
Persistent link: https://www.econbiz.de/10012991131
, though, will have to be on the revenue side, primarily through hikes in the consumption tax rate toward the OECD average and … a broadening of the personal income tax base. Fiscal consolidation should be accompanied by measures to promote … inclusive growth through the tax and benefit system, in particular by introducing an earned income tax credit to assist the …
Persistent link: https://www.econbiz.de/10011732716