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Optimal Taxation in a Habit Formation Economy
Koehne, Sebastian; Kuhn, Moritz - 2014
We study implications of habit formation for optimal taxation. First, we show that taxation problems with habit formation can be analyzed using dynamic programming techniques. Second, we derive optimal labor and savings wedges for habit formation preferences. We show that habit formation...
Persistent link: https://www.econbiz.de/10010328720
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Government Spending and Durable Goods
Boehm, Christoph E. - 2016
This paper shows that the fiscal multiplier for purchases of durable and investment goods is very small - much smaller than the multiplier for nondurable goods. Standard models predict small durables multipliers because private sector purchases of durable goods are highly intertemporally...
Persistent link: https://www.econbiz.de/10011584943
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Sectoral Labor Mobility and Optimal Monetary Policy
Cantelmo, Alessandro; Melina, Giovanni - 2020
How should central banks optimally aggregate sectoral inflation rates in the presence of imperfect labor mobility across sectors? We study this issue in a two-sector New-Keynesian model and show that a lower degree of sectoral labor mobility, ceteris paribus, increases the optimal weight on...
Persistent link: https://www.econbiz.de/10012425544
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On the Taxation of Durable Goods and Housing
Koehne, Sebastian - 2015
This paper proposes a theory of commodity taxation in the presence of durable goods. Optimal commodity taxes depend on preference nonseparabilities between durable and nondurable consumption. In particular, the seminal Atkinson-Stigliz result fails and differential commodity taxes are optimal...
Persistent link: https://www.econbiz.de/10010480810
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Monetary Policy Transmission to Consumer Financial Stress and Durable Consumption
Georgarakos, Dimitris - 2019
We examine the effects of monetary policy on household self-assessed financial stress and durable consumption using panel data from eighteen annual waves of the British Household Panel Survey. For identification, we exploit random variation in household exposure to interest rates generated by...
Persistent link: https://www.econbiz.de/10012866373
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Asymmetric Information and Differentiated Durable Goods Monopoly : Intra-Period Versus Intertemporal Price Discrimination
Laussel, Didier; Van Long, Ngo; Resende, Joana - 2021
A durable good monopolist faces a continuum of heterogeneous customers who make purchase decisions by comparing present and expected price-quality offers. The monopolist designs a sequence of price-quality menus to segment the market. We consider the Markov Perfect Equilibrium (MPE) of a game...
Persistent link: https://www.econbiz.de/10013212257
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A Temporary VAT Cut as Unconventional Fiscal Policy
Bachmann, Rüdiger; Born, Benjamin; Goldfayn-Frank, Olga; … - 2021
We exploit the unexpected announcement of an immediate, temporary VAT cut in Germany in the second half of 2020 as a natural experiment to study the spending response to unconventional fiscal policy. We use survey and scanner data on households’ consumption expenditures and their perceived...
Persistent link: https://www.econbiz.de/10013314690
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Sectoral Labor Mobility and Optimal Monetary Policy
Cantelmo, Alessandro; Melina, Giovanni - 2021
How should central banks optimally aggregate sectoral inflation rates in the presence of imperfect labor mobility across sectors? We study this issue in a two-sector New-Keynesian model and show that a lower degree of sectoral labor mobility, ceteris paribus, increases the optimal weight on...
Persistent link: https://www.econbiz.de/10013315148
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Quality Differentiation in Durable Goods Monopoly Always Yields Strictly Positive Profits
Laussel, Didier; Van Long, Ngo - 2021
A monopolist producing vertically differentiated durable goods can offer in each period a sequence of price-quality menus to segment the market. We show that, contrary to the Coase conjecture for the homogeneous durable good monopoly, thanks to the ability to produce differentiated durable...
Persistent link: https://www.econbiz.de/10013324224
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A Spatial Approach to Energy Economics
Moreno-Cruz, Juan; Taylor, M. Scott - 2013
We develop a spatial model of energy exploitation where energy sources are differentiated by their geographic location … and energy density. The spatial setting creates a scaling law that magnifies the importance of differences across energy … plays must first boom and then bust. For both renewable and non-renewable energy sources we link the size of exploitation …
Persistent link: https://www.econbiz.de/10010292712