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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

Aggregate and distributional effects of increasing taxes on top income earners

Brüggemann, Bettina; Yoo, Jinhyuk - 2015

We analyze the macroeconomic implications of increasing the top marginal income tax rate using a dynamic general equilibrium framework with heterogeneous agents and a fiscal structure resembling the actual US tax system. The wealth and income distributions generated by our model replicate the...

Persistent link: https://www.econbiz.de/10011296121

Aggregate and distributional effects of increasing taxes on top income earners

Brüggemann, Bettina; Yoo, Jinhyuk - 2015

We analyze the macroeconomic implications of increasing the top marginal income tax rate using a dynamic general equilibrium framework with heterogeneous agents and a fiscal structure resembling the actual U.S. tax system. The wealth and income distributions generated by our model replicate the...

Persistent link: https://www.econbiz.de/10011317719

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

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

Taxation of top incomes and tax avoidance

Di Nola, Alessandro; Kocharkov, Georgi; Scholl, Almuth; … - 2024

This paper studies the aggregate and distributional effects of raising the top marginal income tax rate in the presence of tax avoidance. To this end, we develop a quantitative macroeconomic model with heterogeneous agents and occupational choice in which entrepreneurs can avoid taxes in two...

Persistent link: https://www.econbiz.de/10014632306

On the distribution of wealth and employment

Yum, Minchul - 2018

In the United States, the employment rate is nearly flat across wealth quintiles with the exception of the first … quintile. Correlations between wealth and employment are close to zero or moderately positive. However, incomplete markets … employment. Using a fairly standard incomplete markets model calibrated to match the distribution of wealth, I find that …

Persistent link: https://www.econbiz.de/10011818431

Labour market institutions, shocks and the employment rate

Haraldsen, Kristine Wika; Nymoen, Ragnar; Sparrman, Victoria - 2019

The average employment rate for the OECD countries was close to 63 percent in the period 2000- 2015 but there is … considerable variation within and between countries. We find that a dynamic model for employment, derived from a multiple equation … the dynamics well and they imply interpretable estimates of the normal employment rate level, conditional on the state of …

Persistent link: https://www.econbiz.de/10012005508

Labour market institutions, shocks and the employment rate

Haraldsen, Kristine Wika; Nymoen, Ragnar; Sparrman, Victoria - 2019

The average employment rate for the OECD countries was close to 63 percent in the period 2000-2015 but there is … considerable variation within and between countries. We find that a dynamic model for employment, derived from a multiple equation … the dynamics well and they imply interpretable estimates of the normal employment rate level, conditional on the state of …

Persistent link: https://www.econbiz.de/10012018509