We present a model where the saving rate of the household sector, especially households at the bottom of the income distribution, becomes the endogenous variable that adjusts in order for full employment to be maintained over time. An increase in income inequality and the current account deficit...

This paper explores the distributional implications of a fiscal devaluation acquired through a shift from labor to consumption taxes in an open-economy Heterogeneous Agents New Keynesian model with incomplete markets and uninsurable income risk. A permanent fiscal devaluation perfectly mimicking...

The General Theory showed that the main determinant of the level of output and of employment at any point of time was the level of effective demand. It did so in an environment of uncertainty using analysis in historical time. Unfortunately, most of Keynes's insights were soon lost to the...

We study whether output responds symmetrically to tax increases and decreases in postwar US data, using the identification strategy in Romer and Romer (2010). We find evidence of important asymmetries: the output response to a tax increase is statistically insignificant, but output shows a...

In October 2015, fixed capital investment came to 94.8% and in January–October – 94.3% against the same indicators last year. In October, the volume of construction constituted 92.1%, commissioning of new living floor space – 87.4% against indicators of October 2014. Prolonged contraction...

Fixed investment in real terms stood at 97.42% in the period of January to July 2014 compared to the corresponding period in 2013. The structure of sources of financing saw an upward trend towards the formation of a bigger share of equity at enterprises as the share of federal budget resources...

This paper investigates the effects of estate taxation when firms cannot directly observe worker skill levels. Imperfect labor market signaling gives rise to an information externality that causes workers to free-ride off of others' human capital acquisition. Inherited wealth exacerbates the...

We present a model where the saving rate of the household sector, especially households at the bottom of the income distribution, becomes the endogenous variable that adjusts in order for full employment to be maintained over time. An increase in income inequality and the current account deficit...

In January-May 2014, capital investments in real terms amounted to 96.2% on the respective index of the previous year. In the patiern of sources of investment funding, the share of own funds and banks' participation increased with a reduction of investment of federal budget funds. In Q1 2014, in...

The Russian economy entered a period of investment pause in 2013. In terms of financial resources available for the investment process, it is characterized by substantial increase in enterprise self-financing for investment projects with cutbacks in financing through external borrowing. The...