We determine the effects of a delayed or immediate tax cut with or without a "sunset" feature in a real customer-market, nonRicardian economy. Our model incorporates both the supply-sider channel as well as the Feldstein-Rubin-Summers channel. We show that a tax cut may depress both the real...

We study here the effects of future tax and budgetary shocks on present levels of economic activity and real interest rates in a nonmonetary and possibly non-Ricardian economy. The paper first takes up an (unanticipated) temporary tax cut to be effective on a given future date " a delayed "debt...

It seems to be taken for granted by many commentators that the sharp decline in prices of computers, telecommunications equipment and software resulting from the technological improvements in the information and communications technology (ICT)-producing sector is good for jobs and is a major...

Samuelson's "neoclassical synthesis" retrieved the theory of fiscal policy from Keynesian economics to the nonmonetary domain. But no agreement emerged over the right kind of "real" model to adopt. In the neo-Keynesian theory fashioned by Tobin and Modigliani, deficits were anti-growth and...

In open-economy macroeconomics there is a monetary model in the Keynesian tradition that is deemed serviceable for analyzing the short run and there is a nonmonetary neoclassical theory thought capable of handling the long run. But do the Keynesian and neoclassical models meet the challenges...