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Unemployment, Growth and Fiscal Policy : New Insights on the Hysteresis Hypothesis

Raurich, Xavier; Sala, Hector; Sorolla, Valeri - 2021

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and balanced budget rules cause a complementarity between capital and employment capable of explaining the existence of multiple equilibrium paths. Hysteresis is viewed as the result...

Persistent link: https://www.econbiz.de/10013319288

Investment tax incentives and their big time-to-build fiscal multiplier

Bermperoglou, Dimitrios; Deli, Yota; Kalyvitēs, Sarantēs - 2019

This paper studies how investment tax incentives stimulate output in a medium-scale DSGE model, which allows for a … variety of fiscal financing mechanisms. We find that the horizon following a positive shock in investment tax incentives is … analysis also contributes to the time-to-build profile of the fiscal multiplier. The results suggest that investment tax …

Persistent link: https://www.econbiz.de/10012137483

Investment tax incentives and their big time-to-build fiscal multiplier

Bermperoglou, Dimitrios; Deli, Yota; Kalyvitēs, Sarantēs - 2019

This paper studies how investment tax incentives stimulate output in a medium-scale DSGE model, which allows for a … variety of fiscal financing mechanisms. We find that the horizon following a positive shock in investment tax incentives is … results suggest that investment tax incentives are even more effective when nominal wages adjust faster. …

Persistent link: https://www.econbiz.de/10012133944

Government Spending Multipliers : Is there a Difference Between Government Consumption and Investment Purchases?

Haug, Alfred A.; Sznajderska, Anna - 2023

This paper empirically studies the U.S. multiplier effects of government investment, government consumption and total …

Persistent link: https://www.econbiz.de/10014358599

Public Spending and Private Sector Investment : An investigation of the Crowding-in (or-out) Effect amidst deteriorating Fiscal Balance

Alymkulova, Nargiza; Omotesho, Oreoluwatoni; Iorember, … - 2023

impetus for this study. Specifically, the study investigates the effects of public spending on private sector investment … private sector investment. The results show that public expenditure has significant effect private investment in Nigeria … direction and has a negative significant effect on private investment. This suggests that fewer resources are made available for …

Persistent link: https://www.econbiz.de/10014344174

Returning to Surplus: New Zealand's Post-GFC Fiscal Consolidation Experience

Bose, Dhritidyuti; Philip, Renee; Sullivan, Richard - 2016

New Zealand's fiscal outlook deteriorated following the Global Financial Crisis, and in late 2008 fiscal projections showed net government debt in New Zealand increasing from 5% of GDP to around 40% within 10 years, mostly reflecting permanently lower expectations for future tax revenue. These...

Persistent link: https://www.econbiz.de/10012115711

Borrow and adjust : fiscal policy and sectoral adjustment in an open economy

Steigum, Erling; Thøgersen, Øystein - 2001

Should the government run fiscal deficits in response to an adverse external shock that warrants transfer of resources from production of non-traded to traded goods? This paper considers normative fiscal policy implications of sectoral adjustment costs in a two-sector model with overlapping...

Persistent link: https://www.econbiz.de/10011400804

Estimating simple fiscal policy reaction functions for the euro area countries

Plödt, Martin; Boeing-Reicher, Claire - 2014

We formulate and estimate a simple fiscal policy reaction function for the euro area and individual euro area countries. Our reaction function allows for primary surpluses to feature three components: an anti-cyclical response of primary surpluses to the output gap, a response to the debt-GDP...

Persistent link: https://www.econbiz.de/10010235448

Macroeconomic and fiscal challenges faced by the Southern and Eastern Mediterranean region

Dąbrowski, Marek - 2014

business climate, increasing trade and investment openness, and sector diversification. The SEMC may also benefit from a peace …

Persistent link: https://www.econbiz.de/10010337694

Secular stagnation : insights from a new Keynesian model with hysteresis effects

Aarle, Bas van - 2016

To analyse the most important aspects of the Secular Stagnation hypothesis, this paper considers the effects of hysteresis in potential output in a New-Keynesian model that is extended with endogenous potential output. To do so, a number of simulations of relevant scenarios is undertaken. It is...

Persistent link: https://www.econbiz.de/10011444072