If permanent output is uncertain, tax smoothing can be perilous: both debt levels and tax rates are difficult to stabilize and may drift upwards. One practical remedy would be to target the debt. However, our simulations confirm that such a policy would require undesirably volatile fiscal...

"Presenting innovative modelling approaches to the analysis of fiscal policy and government debt, this book moves beyond previous models that have relied upon the assumption that various age-specific rates and policy variables remain unchanged when it comes to generating government expenditures...

Abstract: Warum sind Immobilien in bestimmten Gemeinden teurer als in anderen und welche lokalen Einflussfaktoren bestimmen die Immobilienpreise? Unterscheiden sich Immobilienpreise zwischen Gemeinden aufgrund von unterschiedlichen lokalen Steuern und haben derartige Preisunterschiede über...

This paper studies the design of optimal fiscal policy when a government that fully trusts the probability model of government expenditures faces a fearful public that forms pessimistic expectations. We identify two forces that shape our results. On the one hand, the government has an incentive...