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Government debt, agent heterogeneity and wealth displacement in a small open economy

Petrucci, Alberto R. - 2002

The consequences of government debt on capital formation, financial wealth and labor are investigated in a small open economy with demographic heterogeneity. Two alternative types of demographics are considered: one with intragenerational heterogeneity of the ''savers-spenders'' (SS) type, and...

Persistent link: https://www.econbiz.de/10011335750

Budgetary Policy and Unemployment Dynamics

von Thadden, Leopold; Kaas, Leo - 2001

We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment dynamics are affected by two types of budgetary policies. In line with traditional reasoning, a balanced-budget rule amplifies fluctuations in the short run, whereas an...

Persistent link: https://www.econbiz.de/10010295705

Public debt places no burden on future generations under demand shortage

Ogawa, Takayuki; Ono, Yoshiyasu - 2010

In a Diamond-type overlapping-generations setting public debt issuance places no burden on future generations including those who repay the debt if prices and wages are fixed and unemployment occurs in the periods in which public bonds are issued and repaid. Whether the collected fund is spent...

Persistent link: https://www.econbiz.de/10010332241

Natural Resources, Investment and Long-Term Income

Papyrakis, Dlisraios; Gerlagh, Reyer - 2004

We study the negative correlation between natural resource-abundance and long-term income focusing on the savings-investment … the issue. In this model, savings adjust downwards to income from natural resources, and investment in capital contributes … income through savings and investment. Natural resources have two counteracting effects on income. In the short term …

Persistent link: https://www.econbiz.de/10011324959

Intergenerational redistribution with asymmetric information: The case of non-observable savings

Lorz, Jens Oliver - 1999

productivities. In addition, individual savings and capital incomes are not observable for the government. It is shown that the …

Persistent link: https://www.econbiz.de/10010331072

The political economy of intra- and intergenerational redistribution with asymmetric information

Lorz, Jens Oliver - 1999

-productivity individuals is inefficiently allocated over their life cycle. For a given level of aggregate savings, a Pareto-improvement would …. In addition to this inefficiency, the government in period 1 may choose an inefficient level of aggregate savings in the … equilibrium. It is shown for a specific example that an increase in aggregate savings would be Pareto-improving. …

Persistent link: https://www.econbiz.de/10010275329

Active monetary policy, passive fiscal policy and the value of public debt: some further monetarist arithmetic

von Thadden, Leopold - 2003

We consider the properties of two monetary policy rules ("strict inflation targeting", "constant money growth rule") in an intertemporal equilibrium model with flexible prices in which monetary policy is "active", while fiscal policy is "passive". Specifically, we assume that the fiscal agent...

Persistent link: https://www.econbiz.de/10010295760

Welfare analysis of debt policy during recessions

Ogawa, Takayuki - 2005

This paper develops an overlapping-generations model with nominal wage rigidities and examines the welfare effects of debt policy when unemployment exists. Issues of public debt stimulate aggregate consumption demand and create employment. Future generations then face both increased wage incomes...

Persistent link: https://www.econbiz.de/10010332398

Dynamic Fiscal Policies, Unemployment, and Economic Growth

Josten, Stefan Dietrich - 2003

This paper analyzes the growth and employment effects of dynamic fiscal policies in an overlapping generations model with endogenous growth and imperfect labour markets. With balanced-budget policies, the modelled closed economy grows at a constant rate which is the higher, the lower are the...

Persistent link: https://www.econbiz.de/10010263397

Unemployment, Factor Substitution, and Capital Formation

Kaas, Leo; von Thadden, Leopold - 2001

We incorporate a wage bargaining structure in a dynamic general equilibrium model and show how this feature changes short and long-run properties of equilibria compared with a perfectly competitive setting. We discuss how employment, capital, and income shares respond to wage setting shocks and...

Persistent link: https://www.econbiz.de/10010295699

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