Similar Search Results

Seidl, Hannah; Seyrich, Fabian - 2021

In HANK, we show that fiscal policy is an appropriate macroeconomic stabilization tool at the ZLB. Fiscal policy achieves the same macroeconomic aggregates and the same welfare as hypothetically unconstrained monetary policy by replicating its transmission mechanism. Consumption taxes and labor...

Persistent link: https://www.econbiz.de/10012549562

Unconventional fiscal policy in HANK

Seidl, Hannah; Seyrich, Fabian - 2021 - This version: August 10, 2022

We show that in a New Keynesian model with household heterogeneity, fiscal policy can be a perfect substitute for monetary policy: three simple conditions for consumption taxes, labor taxes, and the government debt level are sufficient to induce the same consumption and labor supply of each...

Persistent link: https://www.econbiz.de/10013342046

Fiscal Policy with Heterogeneous Agents and Incomplete Markets

Heathcote, Jonathan - Economics Institute for Research (SIR), … - 1999

I undertake a quantitative investigation into the short run effects of changes in the timing of taxes for a model economy in which heterogeneous households trade only one asset and face a borrowing constraint. This asset market structure implies that the consumption of low wealth households is...

Persistent link: https://www.econbiz.de/10005190865

The nonlinear effects of fiscal policy

Brinca, Pedro; Faria-e-Castro, Miguel; Ferreira, Miguel H. - 2019

We argue that the fiscal multiplier of government purchases is increasing in the spending shock, in contrast to what is assumed in most of the literature. The fiscal multiplier is largest for large positive government spending shocks and smallest for large contractions in government spending. We...

Persistent link: https://www.econbiz.de/10012015562

Distributional effects of the COVID-19 lockdown

Clemens, Marius; Heinemann, Maik - 2020

A two-sector incomplete markets model with heterogeneous agents can be used to study the distributional effects of the COVID-19 lockdown. While negative aggregate welfare effects of the lockdown are unavoidable, the size of aggregate welfare effects as well as the distribution of the welfare...

Persistent link: https://www.econbiz.de/10012234494

Fiscal management of aggregate demand : the effectiveness of labor tax credits

Ferrière, Axelle; Navarro, Gaston - 2024

We use a quantitative heterogeneous agent model with nominal rigidities and unemployment risk to analyze the effectiveness of several fiscal policies in stabilizing a demand-driven recession. The model delivers empirically realistic distributions of marginal propensities to consume (mpc) and...

Persistent link: https://www.econbiz.de/10015084354

Redistributive fiscal policy and marginal propensities to consume

Spector, Mariano - In: Journal of economic theory : JET 218 (2024), pp. 1-20

Persistent link: https://www.econbiz.de/10015070887

Countercyclical fiscal policy and gender employment : evidence from the G-7 countries

Akitoby, Bernardin; Honda, Jiro; Miyamoto, Hiroaki - In: IZA journal of labor policy 12 (2022) 1, pp. 1-23

Would countercyclical fiscal policy during recessions improve or worsen the gender employment gap? We answer this … question by exploring the state-dependent impact of fiscal spending shocks on employment by gender in the G-7 countries. Using … the local projection method, we find that, during recessions, a positive fiscal spending shock increases female employment …

Persistent link: https://www.econbiz.de/10013368240

Interactions between private and public sector wages

Afonso, António; Gomes, Pedro - In: Journal of Macroeconomics 39 (2014) PA, pp. 97-112

public sector wages and of public sector employment positively affects the growth of private sector wages. Moreover, total …

Persistent link: https://www.econbiz.de/10011065350

Money Creation, Employment and Economic Stability: The Monetary Theory of Unemployment and Inflation

Parguez, Alain - In: Panoeconomicus 55 (2008) 1, pp. 39-67

paper derives the employment function in the modern monetary economy. Thereby it is explained that full employment policy is … explained that there is no trade-off between full employment and sustainable price stability. …

Persistent link: https://www.econbiz.de/10008554148