Similar Search Results

Myopic governments and welfare-enhancing debt limits

Rieth, Malte - 2011

This paper studies welfare consequences of a soft borrowing constraint on sovereign debt which is modeled as a … proportional fine per unit of debt exceeding some reference value. Debt is the result of myopic fiscal policy where the government … is assumed to have a smaller discount factor than the private sector. Due to the absence of lump-sum taxation, debt …

Persistent link: https://www.econbiz.de/10009640642

Debt bias in corporate taxation and the costs of banking crises in the EU

Langedijk, Sven - 2014

Persistent link: https://www.econbiz.de/10010478771

The optimal degree of discretion in monetary policy

Athey, Susan; Atkeson, Andrew; Kehoe, Patrick J. - 2004

How much discretion should the monetary authority have in setting its policy? This question is analyzed in an economy with an agreed-upon social welfare function that depends on the randomly fluctuating state of the economy. The monetary authority has private information about that state. In the...

Persistent link: https://www.econbiz.de/10009639392

A quarterly fiscal database for the euro area based on intra-annual fiscal information

Paredes, Joan; Pedregal, Diego J.; Pérez, Javier J. - 2009

The analysis of the macroeconomic impact of fiscal policies in the euro area has been traditionally limited by the absence of quarterly fiscal data. To overcome this problem, we provide two new databases in this paper. Firstly, we construct a quarterly database of euro area fiscal variables for...

Persistent link: https://www.econbiz.de/10009640447

Sovereign risk premia in the European government bond market

Bernoth, Kerstin; Hagen, Jürgen/von; Schuknecht, Ludger - 2004

differentials between bonds issued by EU countries and Germany or the USA contain risk premia which increase with the debt, deficit … and debt-service ratio and depend positively on the issuer’s relative bond market size. Global investors’ attitude towards …

Persistent link: https://www.econbiz.de/10009639423

Fiscal rules and sustainability of public finances in an endogenous growth model

Annicchiarico, Barbara; Giammarioli, Nicola - 2004

sector with objectives of convergence for public debt and primary balance to GDP ratios. In order to ensure the existence of … debt and the primary surplus to GDP ratios. It is shown that the fiscal rule displaying time invariant parameters may …

Persistent link: https://www.econbiz.de/10009639435

Fiscal sustainability and public debt in an endogenous growth model

Fernández-Huertas Moraga, Jesús; Vidal, Jean-Pierre - 2004

This paper investigates fiscal sustainability in an overlapping generations economy with endogenous growth coming from human capital formation through educational spending. We assess how budgetary imbalances affect economic dynamics and the outlook for economic growth, thereby providing a...

Persistent link: https://www.econbiz.de/10009639455

The impact of high and growing government debt on economic growth

Checherita, Cristina; Rother, Philipp - 2010

This paper investigates the average impact of government debt on per-capita GDP growth in twelve euro area countries … over a period of about 40 years starting in 1970. It finds a non-linear impact of debt on growth with a turning point …—beyond which the government debt-to-GDP ratio has a deleterious impact on long-term growth—at about 90-100% of GDP. Confidence …

Persistent link: https://www.econbiz.de/10009640303

Government bond risk premiums in the EU revisited

Schuknecht, Ludger; Hagen, Jürgen von; Wolswijk, Guido - 2010

This note looks at US$ and DM/Euro denominated government bond spreads relative to US and German benchmark bonds before and after the start of the current financial crisis. The study finds, first, that bond yield spreads before and during the crisis can largely be explained on the basis of...

Persistent link: https://www.econbiz.de/10009640407

The response of labour taxation to changes in government debt

Holm-Hadulla, Fédéric; Leiner-Killinger, Nadine; … - 2011

This paper investigates the relationship between government debt and labour taxation for a panel of 18 EU countries … positive response of labour taxation to changes in the general government debt and interest expenditure-to-GDP ratios. The …

Persistent link: https://www.econbiz.de/10009640641