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Imperfect financial markets and the cyclicality of social spending
Froemel, Maren; Paczos, Wojtek - 2024
economy model with income inequality, social transfers, and default risk to rationalize this fact. Without default risk … transfers are countercyclical, inequality is procyclical, and external debt is used to smooth distortionary taxation. With … become procyclical and inequality worsens during times when risk premia are high. We confirm the predictions of the model in …
Persistent link: https://www.econbiz.de/10014490852
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Minimum wage and tolerance for high incomes
Fazio, Andrea; Reggiani, Tommaso - 2023
Persistent link: https://www.econbiz.de/10014456609
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Fiscal policy, entry and capital accumulation : hump-shaped responses
Brito, Paulo; Dixon, Huw - 2012
In this paper we consider the entry and exit of firms in a Ramsey model with capital and an endogenous labour supply. At the firm level, there is a fixed cost combined with increasing marginal cost, which gives a standard U-shaped cost curve with optimal firm size. The costs of entry (exit) are...
Persistent link: https://www.econbiz.de/10009530145
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UK monetary policy in an estimated DSGE model with state-dependent price and wage contracts
Chen, Haixia; Le, Vo Phuong Mai; Meenagh, David; … - 2023
Considerable micro-level evidence suggests that price/wage contract durations fluctuate with the state of the economy, particularly inflation; nonetheless, macro-level evidence for this is scarce. We incorporate state-dependent price/wage setting into an open economy DSGE model to investigate...
Persistent link: https://www.econbiz.de/10014434524
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The role of fiscal policy : a survey of recent empirical findings
Le, Vo Phuong Mai; Meenagh, David; Minford, Patrick - 2023
DSGE models based on New Keynesian principles, which have been extended to allow for banking, the zero lower bound on interest rates (ZLB), and varying price duration, can account well for recent macroeconomic behavior across a variety of economies. These models Önd that active Öscal policy...
Persistent link: https://www.econbiz.de/10014433366
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Fiscal devolution and dependency
Foreman-Peck, James S.; Lungu, Laurian - 2005
Public spending devolution in practice is widely seen as more appropriate for addressing varied political aspirations within state boundaries than is tax devolution. A drawback is that devolved public spending may be subject to irresistible upward pressure, as illustrated by 'formula drift' of...
Persistent link: https://www.econbiz.de/10011517047
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Fiscal policy and the nominal term premium
Kaszab, Lorant; Marsal, Ales - 2013
Distortionary income taxation in a standard New Keynesian model substantially increases the nominal term-premium on long-term bonds relative to a model with lumpsum taxes. Also the empirical level of the nominal term premium can be matched with lower risk-aversion coefficient in case of a model...
Persistent link: https://www.econbiz.de/10010222369
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Public opinion, elections, and environmental fiscal policy
Chortareas, Georgios E.; Logothetis, Vassilis E.; … - 2018
We investigate how public opinion along with the electoral process affect the strength of environmental fiscal policies in the European Union (EU). Our analysis accounts for a set of economic, institutional, and political factors that can affect environmental taxes and expenditures. We pursue a...
Persistent link: https://www.econbiz.de/10011886767
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Assessing the institutions-innovation channel within the inequality-growth nexus
Sun, Yang; Easaw, Joshy Z.; Logothetis, Vassilis - 2023
inequality-growth nexus. By carrying out fixed effects estimations on a cross-country panel, we find that both institutional … innovations on growth and inequality diminish as institutions increase in quality, and the effects of institutions can be … influenced by level of innovations. This indicates that while institutions and innovations can be inequality-inducing, their …
Persistent link: https://www.econbiz.de/10014434530
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Rule-of-thumb consumers and labor tax cut policy in the zero lower bound
Kaszab, Lorant - 2012
This paper finds that labor tax cut can be an effective policy tool to mitigate the negative effects of a shock that made the zero lower bound on the nominal interest rate binding if the economy features rule-of-thumb households (besides Ricardian ones) and nominal rigidities in prices and...
Persistent link: https://www.econbiz.de/10009563567