Showing 1 - 10 of 334
This paper proposes a model that links households and firms, as usual, by markets for factors and goods and, additionally, by a banking sector that channels households' funds to firms and eliminates idiosyncratic risk. In equilibrium, agency costs and tax benefits of corporate debt are...
Persistent link: https://www.econbiz.de/10010265686
Persistent link: https://www.econbiz.de/10009356327
The output multiplier turns negative before a deficit spending program expires. We show the generality of this unpleasant finding for the standard real business cycle model. We then calibrate an extended model for the US and demonstrate how fiscal stimulus slows down economic recovery from...
Persistent link: https://www.econbiz.de/10008909549
Can a large-scale defcit spending program speed up recovery after recession? To answer that question we calibrate a standard neoclassical growth model with US data and assume that an exogenous shock has driven aggregate output far below steady-state level. We calibrate the model such that a...
Persistent link: https://www.econbiz.de/10003857658
This paper proposes a model that links households and firms, as usual, by markets for factors and goods and, additionally, by a banking sector that channels households' funds to firms and eliminates idiosyncratic risk. In equilibrium, agency costs and tax benefits of corporate debt are...
Persistent link: https://www.econbiz.de/10003725605
Persistent link: https://www.econbiz.de/10011722133
Two countries are populated by workers and capitalists. Their governments collect taxes to finance productive expenditure and income redistribution. The share of income redistributed defines the size of the welfare state. Although both groups benefit from an abolition of the welfare state in the...
Persistent link: https://www.econbiz.de/10014116024
This paper considers an overlapping generations model of economic growth populated by two types of individuals. Competitive types compare future consumption (i.e. wealth) with the mean. Self-sufficient types derive utility simply from their own consumption and do not compare themselves with...
Persistent link: https://www.econbiz.de/10009784196
Persistent link: https://www.econbiz.de/10011478618
We present a multi-country theory of economic growth and R&D-driven technological progress in which countries are …
Persistent link: https://www.econbiz.de/10011688459