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Implementing the stability and growth pact: enforcement and procedural flexibility

Beetsma, Roel; Debrun, Xavier - 2005

, possibly destroying the case for flexibility. Also, improved budget monitoring and greater transparency increase the benefits …

Persistent link: https://www.econbiz.de/10011604479

Does government spending crowd in private consumption? Theory and empirical evidence for the euro area

Coenen, Günter; Straub, Roland - 2005

In this paper, we revisit the effects of government spending shocks on private consumption within an estimated New-Keynesian DSGE model of the euro area featuring non-Ricardian households. Employing Bayesian inference methods, we show that the presence of non-Ricardian households is in general...

Persistent link: https://www.econbiz.de/10011604559

Excess burden and the cost of inefficiency in public services provision

Afonso, António; Gaspar, Vítor - 2006

In this paper we revisit the literature on the economic consequences from inefficiency in public services provision. Following Dupuit (1844) and Pigou (1947) we argue that it is important to take the financing side explicitly into account. The fact that public expenditure financing must rely on...

Persistent link: https://www.econbiz.de/10011604647

Fiscal convergence before entering the EMU

Onorante, Luca - 2006

The monetary integration of the acceding countries will proceed in several distinct steps, starting with membership in the European Union (EU), followed by participation in the so-called Exchange Rate Mechanism (ERM) II and ultimately entry into the euro area. This paper addresses the question...

Persistent link: https://www.econbiz.de/10011604710

Fiscal consolidation in the euro area: long-run benefits and short-run costs.

Coenen, Günter; Mohr, Matthias; Straub, Roland - 2008

In this paper, we examine the macroeconomic effects of alternative fiscal consolidation policies in the New Area-Wide Model (NAWM), a two-country open-economy model of the euro area developed at the European Central Bank (cf. Coenen et al., 2007). We model fiscal consolidation as a permanent...

Persistent link: https://www.econbiz.de/10011604948

Public and private sector wages interactions in a general equilibrium model

Fernàndez-de-Córdoba, Gonzalo; Pérez, Javier J.; … - 2009

suggests a positive correlation between public and private sector wages. Any increase in tax revenues, coupled with the …

Persistent link: https://www.econbiz.de/10011605145

Does the Wage Tax System cause Budget Deficits?

Riedl, Arno; van Winden, Frans A.A.M. - 2000

In this paper we investigate experimentally the functioning of a wage tax financed unemployment benefit system on the … explain the budget deficits we observe in the laboratory economies. Furthermore, we find that tax adjustments in order to …

Persistent link: https://www.econbiz.de/10010324556

The Effect of Fiscal Rules on Public Investment if Budget Deficits are Politically Motivated

Dur, Robert A.J.; Peletier, Ben D.; Swank, Otto H. - 1997

Uncertainty about the future preferences of the government may induce policy makers to run excessive budget deficits. As a solution to this problem, economists have proposed to impose a binding debt rule. In this paper we argue that a binding debt rule does not eliminate the distortions due to...

Persistent link: https://www.econbiz.de/10010324588

Input versus Output Taxation in an Experimental International Economy

Riedl, Arno; van Winden, Frans - 2003

systems as a means to finance unemployment benefits: a sales-tax-cum-labor-subsidy system versus a wage tax system. The two … relatively small 'home' country and a large 'foreign' country. It compares the economic performance of two alternative tax … systems are applied to the home country, while the wage tax system always obtains in the foreign country. In stark contrast …

Persistent link: https://www.econbiz.de/10010324982

Productive Government Expenditure in Monetary Business Cycle Models

Linnemann, Ludger; Schabert, Andreas - 2005

This paper assesses the transmission of fiscal policy shocks in a New Keynesian framework where government expenditures contribute to aggregate production. It is shown that even if the impact of government expenditures on production is small, this assumption helps to reconcile the models'...

Persistent link: https://www.econbiz.de/10010325148