t has been shown that under perfect competition and a Cobb-Douglas production function, a basic real business cycle model may exhibit indeterminacy and sunspots fluctuations when income tax rates are determined by a balanced-budget rule. This paper introduces in an otherwise standard real...

It has been shown that under perfect competition and a Cobb-Douglas production function, a basic real business cycle model may exhibit indeterminacy and sunspot fluctuations when income tax rates are determined by a balanced-budget rule. This paper introduces in an otherwise standard real...

It has been shown that under perfect competition and a Cobb-Douglas production function, a basic real business cycle model may exhibit indeterminacy and sunspots fluctuations when income tax rates are determined by a balanced-budget rule. This paper introduces in an otherwise standard real...

This paper studies the fiscal implications for the Beninese economy of scaling up of public investment when the government is subject to inefficiencies on the spending and on the tax collection side. While scaling up of public investments results in higher long-run output and consumption levels,...

This paper develops an open-economy DSGE model with an optimizing banking sector to assess the role of capital flows, macro-financial linkages, and macroprudential policies in emerging Asia. The key result is that macro-prudential measures can usefully complement monetary policy. Countercyclical...

We study Ramsey monetary and fiscal policy in a small scale New Keynesian<br/>model where government spending has intrinsic value, public debt is<br/>state-noncontingent and the fiscal authority is constrained by using<br/>distortive taxation. We show that Ramsey policy is remarkably altered when<br/>consumption...

We characterise optimal fiscal policies when the government has access to consumption taxation but cannot credibly commit to future policies, in a calibrated Real Business Cycle model of the United States economy. Contrary to the case where only labour and capital income are taxed, the optimal...

We study the normative implications of a New Keynesian model featuring intersectoral trade of intermediate goods between two sectors that produce durables and non-durables. The interplay between durability and sectoral production linkages fundamentally alters the intersectoral stabilization...

This paper contributes to a recent debate about the structural and institutional<br/>conditions under which discretionary monetary policy-making may be superior to<br/>timeless perspective. To this end, we formulate an input-output economy in which firms technology employs both labor and intermediate...