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Uninsurable investment risks and capital income taxation

Meh, Césaire Assah (contributor); Terajima, Yaz (contributor) - 2009

-accumulation of capital may result compared to the complete markets economy. We show that reducing somewhat the capital income tax … rate increases the capital stock and leads to a welfare gain. The complete elimination of the capital income tax, however …

Persistent link: https://www.econbiz.de/10003804296

Housing and tax policy

Alpanda, Sami; Zubairy, Sarah - 2013

In this paper, we investigate the effects of housing-related tax policy measures on macroeconomic aggregates using a …-occupied housing. Using our model, we analyze the effects of changes in housing-related tax policy measures on the level of output, tax … revenue and household debt, along with other macroeconomic aggregates. The tax policies we consider are (i) increasing …

Persistent link: https://www.econbiz.de/10009789532

Risk sharing in the presence of a public good

Schroth, Josef - 2015

This paper studies an economy where agents can spend resources on consuming a private good and on funding a public good. There is asymmetric information regarding agents' relative preference for private versus public good consumption. I show how private good consumption should be coordinated...

Persistent link: https://www.econbiz.de/10011302006

Housework and fiscal expansions

Gnocchi, Stefano; Hauser, Daniela; Pappa, Euē - 2014

We build an otherwise-standard business cycle model with housework, calibrated consistently with data on time use, in order to discipline consumption-hours complementarity and relate its strength to the size of fiscal multipliers. We show that if substitutability between home and market goods is...

Persistent link: https://www.econbiz.de/10010386697

The financial origins of non-fundamental risk

Acharya, Sushant; Dogra, Keshav; Singh, Sanjay R. - 2022 - Last updated: January 14, 2022

We formalize the idea that the financial sector can be a source of non-fundamental risk. Households' desire to hedge against price volatility can generate price volatility in equilibrium, even absent fundamental risk. Fearing that asset prices may fall, risk-averse households demand safe assets...

Persistent link: https://www.econbiz.de/10012798791

Monetary policy, trends in real interest rates and depressed demand

Beaudry, Paul; Meh, Césaire Assah - 2021 - Last updated: August 16, 2021

Over the last few decades, real interest rates have trended downward in many countries. The most common explanation is that this reflects depressed demand due to demographic, technological and other real factors such as income inequality. In this paper we explore the claim that these trends may...

Persistent link: https://www.econbiz.de/10012546126

Optimal monetary policy according to HANK

Acharya, Sushant; Challe, Edouard; Dogra, Keshav - 2021 - Last updated: November 5, 2021

We study optimal monetary policy in an analytically tractable Heterogeneous Agent New Keynesian model with rich cross-sectional heterogeneity. Optimal policy differs from that in a representative agent model because monetary policy can affect consumption inequality by reducing both idiosyncratic...

Persistent link: https://www.econbiz.de/10012657868

Fiscal spillovers : the case of US corporate and personal income taxes

Hanson, Madeline; Hauser, Daniela; Priftis, Romanos - 2021 - Last updated: August 20, 2021

This paper extends the identification of unanticipated changes in average federal corporate and personal income tax …

Persistent link: https://www.econbiz.de/10012604760

(Optimal) monetary policy with and without debt

Chafwehé, Boris; Oikonomou, Rigas; Priftis, Romanos; … - 2021 - Last updated: January 26, 2021

We propose a framework of optimal monetary policy where debt sustainability may, or may not, be a relevant constraint for the central bank. We show analytically that in each environment the optimal interest rate path consists of a Taylor rule augmented with forward guidance terms. These terms...

Persistent link: https://www.econbiz.de/10012420260

Time-consistent management of a liquidity trap with government debt

Matveev, Dmitry - 2018

This paper studies optimal discretionary monetary and fiscal policy when the lower bound on nominal interest rates is occasionally binding in a model with nominal rigidities and long-term government debt. At the lower bound it is optimal for the government to temporarily reduce debt. This...

Persistent link: https://www.econbiz.de/10011881785