This Paper provides an analytical characterization of Markov perfect equilibria in a model with repeated majority voting, where agents vote over income redistribution. The key feature of the theory is that the future constituency of redistributive policies depends positively on the current level...

This paper analyses two features of concern to policy-makers in the countries of the prospective European Monetary Union: the solvency of their government’s finances; and the accuracy of fiscal forecasts. Extending the existing methodology of solvency tests, the paper finds that, with few...

Of all the institutional arrangements for monetary union in Europe, the fiscal convergence criteria have proved the most difficult to achieve and the most controversial because of their presumed deflationary impact on economies already suffering high unemployment. This paper examines what fiscal...

The objective of this study is to investigate the behaviour of monetary and fiscal authorities in the Euro area. Our main contribution is joint modeling of behaviour of the two authorities. Our investigation highlights a number of facts. The systematic monetary policies adopted by the non-German...

Hypothetical revenue-neutral tax reforms are conducted in a calibrated endogenous growth model in which money serves to economize on the time-costs of transacting. The model includes the cash-in-advance (CIA) and non-monetary frameworks as special cases of the parameterization. The results of...

This paper explores the interaction between centralized monetary policy and decentralized fiscal policy in a monetary union. Discretionary monetary policy suffers from a failure to commit. Moreover, decentralized fiscal policymakers impose externalities on each other through the influence of...

This study seeks to discern whether the current distribution of income determines the evolution of future income distribution and economic growth through fiscal policy. Fiscal policy consists of transfer payments or an income tax. Fiscal policy is determined by the level of development,...

Nous utilisons un modele theorique a generations imbriquees, avec transferts et depenses publiques pour examiner ce que doit etre la reponse optimale de la politique budgetaire au vieillissement demographique. Nous partons du cas du Japon, ou le vieillissement a entraine une chute de la demande...

La croissance exponentielle de la dette publique dans les pays de l'OCED a pousse les Etats a se financer de plus en plus sur le marche, les titres remplacant progressivement la monnaie. L'objectif de cet article est d'etudier l'impact conjugue des politiques desinflationnistes et du financement...