This note discusses trade liberalization and trade taxes. The main issue should not be the reduction of trade taxes but of total tax revenue. By potentially changing the structure of the economy, trade liberalization will affect not just tax revenue but also the role of the state in the economy...

This paper develops a dynamic stochastic general equilibrium model with nominal rigidities, capital accumulation and finite lifetimes. The framework exhibits intergenerational wealth effects and is intended to investigate the macroeconomic implications of fiscal policy, which is specified by...

Globalization is not a new phenomenon. However, the current form is qualitatively different from past experiences. It provides great opportunities for some countries and challenges to others. A first part of the paper identifies positive and negative effects associated with globalization. The...

La Revista Integración & Comercio del BID incluye artículos referidos a las distintas manifestaciones del proceso de integración en América Latina y el Caribe, a la integración hemisférica y, también, a los procesos con igual orientación que se llevan a cabo en otras partes del mundo....

We examine the historical dynamics of government debt in post-unification Italy, from 1861 to 2009. Unit root tests for the debt-GDP ratio are unable to reject either the non-stationarity or the stationarity null hypothesis. Controlling debt dynamics for fiscal feedback policies of the...

This presentation was commissioned by the Trade and Integration Network of the Regional Policy Dialogue for the 5th Hemispheric Meeting celebrated on August 14th and 15th, 2003. This presentation discusses trade taxes as an important source of revenue in developing countries. The relationship...

This paper sketches the outline of "Theory of Fiscal Policy" in its most essential elements and outlines the assumptions implicit in it. It then argues that the reality can be far removed from this theory, at least in some countries.

We examine the historical dynamics of government debt in Post-Unification Italy, from 1861 to 2009. Unit root tests for the debt-GDP ratio are unable to reject either the non stationarity or the stationarity null hypothesis. Controlling debt dynamics for fiscal feedback policies of the...

We investigate the sustainability of Italy's public finances from 1862 to 2012 adopting a non-linear perspective. Specifically, we employ the smooth transition regression approach to explore the scope for non-linear fiscal adjustments of primary surpluses in response to the accumulation of debt....

This paper presents a dynamic stochastic general equilibrium model with nominal rigidities, capital accumulation and finite horizons. Our New Keynesian framework exhibits intergenerational wealth effects and is intended to investigate the macroeconomic implications of fiscal policy, which is...