Showing 1 - 10 of 35
This paper examines the interaction of monetary and fiscal policies using an estimated New Keynesian dynamic general equilibrium model for the US. In contrast to earlier work using VAR models, we show that the strategic complementarity or substitutability of fiscal and monetary policy depends...
Persistent link: https://www.econbiz.de/10005405835
Since the seminal work of Oates (1972) on scal federalism, a central question of public finance has been which level of a federation should be as- signed the provision of public goods. In this paper we study the problem of a government that is to choose the optimal...
Persistent link: https://www.econbiz.de/10011114854
In this paper, we empirically assess the impact of government debt on two key determinants of long-term growth, i.e., private investment and productivity, on a panel of 20 OECD economies from 1970 to 2009. Our main finding is that high public debts are followed by significant and linear declines...
Persistent link: https://www.econbiz.de/10011124128
Estimate the impact of public debt on productivity and investments Empirical analysis, panel data, threshold models Debt impacts negatively on the determinants of growth There is evidence of asymmetric effects
Persistent link: https://www.econbiz.de/10010902569
We explore the time variation of factor loadings and abnormal returns in the context of a four-factor model. Our methodology, based on an application of the Kalman filter and on endogenous uncertainty, overcomes several limitations of competing approaches used in the literature. Besides taking...
Persistent link: https://www.econbiz.de/10010906237
The recent observed decline of business cycle variability suggests that broad macroeconomic risk may have fallen as well. This may in turn have some impact on equity risk premia. We investigate the latent structures in the volatilities of the business cycle and stock market valuations by...
Persistent link: https://www.econbiz.de/10011072864
type="main" xml:lang="en" <title type="main">Abstract</title> <p>I employ a parsimonious model with learning, but without conditioning information, to extract time-varying measures of market-risk sensitivities, pricing errors and pricing uncertainty. The evolution of these quantities has interesting implications for...</p>
Persistent link: https://www.econbiz.de/10011031961
Persistent link: https://www.econbiz.de/10006560397
We examine Italian inflation rates and the Phillips curve with a very long-run perspective, one that covers the entire existence of the Italian lira from political unification (1861) to Italy’s entry in the European Monetary Union (end of 1998). We first study the volatility, persistence and...
Persistent link: https://www.econbiz.de/10008556960
Was there a textbook-like Phillips curve in post-WWII Italy? We estimate a consensus model of the relationship between inflation and the level of economic activity over 1949-1998, finding no evidence of a significant and positive feedback from output to prices. We also estimate similar models...
Persistent link: https://www.econbiz.de/10005012467