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... Automatic vs. Discretionary Fiscal Policy Discretionary fiscal stabilization policy occurs when the government actively changes G and/or T in an effort to affect real GDP. Automatic fiscal stabilization occurs because of the design of the tax and transfer system (T = tY): - as Y changes, transfers ...
... Automatic vs. Discretionary Fiscal Policy Discretionary fiscal stabilization policy occurs when the government actively changes G and/or T in an effort to affect real GDP. Automatic fiscal stabilization occurs because of the design of the tax and transfer system (T = tY): - as Y changes, transfers ...
es09 Ragot 11171426 en
... and macroeconomic policy has thus far remained limited. In these models indeed, the whole history of employment statuses contributes to the determination of any agent’s wealth and in…nitely many types of agents, each of which having their own optimal consumption and saving plans, asymptotically coex ...
... and macroeconomic policy has thus far remained limited. In these models indeed, the whole history of employment statuses contributes to the determination of any agent’s wealth and in…nitely many types of agents, each of which having their own optimal consumption and saving plans, asymptotically coex ...
Teaching note
... Investments were cut back including, for example, an auto parts maker that canceled plans for a new factory. “Difficult passage: After terror attacks, shipping goods takes longer and costs more” (Shifting AS) Increased security after the September 11, 2001 terrorist attacks caused added costs and de ...
... Investments were cut back including, for example, an auto parts maker that canceled plans for a new factory. “Difficult passage: After terror attacks, shipping goods takes longer and costs more” (Shifting AS) Increased security after the September 11, 2001 terrorist attacks caused added costs and de ...
1. Consumer Theory (Cont.) 1.5- Consumer Choice 1.6
... indifference curve that is still affordable. ...
... indifference curve that is still affordable. ...
When the North Last Headed South
... economy. An enlarged balance sheet also provided fiscal authorities more space to be aggressive, if they felt so inclined.6 All this meets the definition of “unconventional” monetary policy and quantitative easing (as in Bernanke and Reinhart 2004). In the standard rendering, there were three acts t ...
... economy. An enlarged balance sheet also provided fiscal authorities more space to be aggressive, if they felt so inclined.6 All this meets the definition of “unconventional” monetary policy and quantitative easing (as in Bernanke and Reinhart 2004). In the standard rendering, there were three acts t ...
Fiscal policies in Europe and the United States
... that from the point of view of economic growth, it was not important whether the government or private sector was consuming. In addition, borrowing money was not viewed as a relevant activity. If the money was loaned from the domestic financial markets, it was believed it would have been consumed do ...
... that from the point of view of economic growth, it was not important whether the government or private sector was consuming. In addition, borrowing money was not viewed as a relevant activity. If the money was loaned from the domestic financial markets, it was believed it would have been consumed do ...
PDF
... the results of previous studies. As criminal organizations infiltrate in areas with high economic activity, where greater opportunities of profitable business are possible, the expected gains from crime increase in more prosperous economies (Neanidis et al., 2014). Thus, the positive sign of the coe ...
... the results of previous studies. As criminal organizations infiltrate in areas with high economic activity, where greater opportunities of profitable business are possible, the expected gains from crime increase in more prosperous economies (Neanidis et al., 2014). Thus, the positive sign of the coe ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... because he did not think that monetary policy could ultimately control inflation. He had a sophisticated set of equilibrium views close to what we have in modern times and thought it was ridiculous to tightly control the money stock. There was an L-shaped view of inflation at the time. At low capaci ...
... because he did not think that monetary policy could ultimately control inflation. He had a sophisticated set of equilibrium views close to what we have in modern times and thought it was ridiculous to tightly control the money stock. There was an L-shaped view of inflation at the time. At low capaci ...
Unexpected Consequences of Ricardian Expectations
... 1979) has become a standard topic in every macroeconomic textbook. It establishes the set of feasible life-time consumption plans of the households as determined by the time-path of government spending. Provided the households act rationally, it is asserted that this set remains unaltered by a chang ...
... 1979) has become a standard topic in every macroeconomic textbook. It establishes the set of feasible life-time consumption plans of the households as determined by the time-path of government spending. Provided the households act rationally, it is asserted that this set remains unaltered by a chang ...
The Great Depression
... Earlier research, by Friedman-Schwartz (1963), suggests the Great Depression can be explained by a contracting money supply due to poorly regulated banks and inadequate monetary response. This paper investigates this theory through estimating the relationship between industrial production, the monet ...
... Earlier research, by Friedman-Schwartz (1963), suggests the Great Depression can be explained by a contracting money supply due to poorly regulated banks and inadequate monetary response. This paper investigates this theory through estimating the relationship between industrial production, the monet ...
The Economic Impact of the National Retail Sales Tax
... of consumers’ durables. Both are substantial in magnitude, but could be taxed by the “prepayment method” described by David Bradford (1986). In this approach taxes on the consumption of the services would be prepaid by including investment rather than consumption in the definition of the tax base. T ...
... of consumers’ durables. Both are substantial in magnitude, but could be taxed by the “prepayment method” described by David Bradford (1986). In this approach taxes on the consumption of the services would be prepaid by including investment rather than consumption in the definition of the tax base. T ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... economic affairs reflects, in my opinion, different implicit or explicit answers to these empirical questions. The reason such differences have been able to persist is, I believe, that full adjustment to monetary disturbances takes a very long time and affects many economic magnitudes. If adjustment ...
... economic affairs reflects, in my opinion, different implicit or explicit answers to these empirical questions. The reason such differences have been able to persist is, I believe, that full adjustment to monetary disturbances takes a very long time and affects many economic magnitudes. If adjustment ...
interest rate - Nimantha Manamperi, PhD
... 2. According to the savings–investment spending identity, savings and investment spending are always equal for the economy as a whole. The government is a source of savings when it runs a positive budget balance or budget surplus; it is a source of dissavings when it runs a negative budget balance o ...
... 2. According to the savings–investment spending identity, savings and investment spending are always equal for the economy as a whole. The government is a source of savings when it runs a positive budget balance or budget surplus; it is a source of dissavings when it runs a negative budget balance o ...
Ontario Beef Industry Fact Pack
... AllsubͲsectorsoftheindustrycontributetotheeconomyandconsequentlymultiplierscanbeestimated foreachsubͲsector.Atthesametimeitisimportanttonotethatthesumtotalofalloftheindividual subͲsectormultipliersdoesnotresultinthetotalindustrymultiplier.Individualsu ...
... AllsubͲsectorsoftheindustrycontributetotheeconomyandconsequentlymultiplierscanbeestimated foreachsubͲsector.Atthesametimeitisimportanttonotethatthesumtotalofalloftheindividual subͲsectormultipliersdoesnotresultinthetotalindustrymultiplier.Individualsu ...
Fiscal Policy and MPC Heterogeneity
... Fiscal Policy and MPC Heterogeneity † By Tullio Jappelli and Luigi Pistaferri * We use responses to survey questions in the 2010 Italian Survey of Household Income and Wealth that ask consumers how much of an unexpected transitory income change they would consume. The marginal propensity to consume ...
... Fiscal Policy and MPC Heterogeneity † By Tullio Jappelli and Luigi Pistaferri * We use responses to survey questions in the 2010 Italian Survey of Household Income and Wealth that ask consumers how much of an unexpected transitory income change they would consume. The marginal propensity to consume ...
Document
... A. a lower interest rate and a larger growth in real GDP. B. a lower interest rate and a smaller growth in real GDP. C. a higher interest rate and a larger growth in real GDP. D. a higher interest rate and a smaller growth in real GDP. ...
... A. a lower interest rate and a larger growth in real GDP. B. a lower interest rate and a smaller growth in real GDP. C. a higher interest rate and a larger growth in real GDP. D. a higher interest rate and a smaller growth in real GDP. ...
2012 Budget Speech - National Treasury
... Public entities such as Eskom and Transnet finance their investments from internally generated surpluses and borrowing from the capital market. This means they have to generate sufficient revenue from tariffs and charges to repay debt over time, and cover operating and maintenance costs. ...
... Public entities such as Eskom and Transnet finance their investments from internally generated surpluses and borrowing from the capital market. This means they have to generate sufficient revenue from tariffs and charges to repay debt over time, and cover operating and maintenance costs. ...
Capital Taxation During the US Great Depression
... to reduce taxable corporate profits by expensing intangible investments like advertising expenditures and research and development (R&D). The model predicts that higher taxes during the 1930s led to a dramatic decline in tangible investment, similar to that observed in the United States, with the m ...
... to reduce taxable corporate profits by expensing intangible investments like advertising expenditures and research and development (R&D). The model predicts that higher taxes during the 1930s led to a dramatic decline in tangible investment, similar to that observed in the United States, with the m ...
sustainability Monetary and Fiscal Policies for a Finite Planet
... nonetheless, can serve as a means of exchange, a store of value and a unit of account. Fiat money, at its core, is an information system [16]. Money retains its value due to mutual trust in its usefulness. If people lose faith in a particular currency, its value will decline or people will switch to ...
... nonetheless, can serve as a means of exchange, a store of value and a unit of account. Fiat money, at its core, is an information system [16]. Money retains its value due to mutual trust in its usefulness. If people lose faith in a particular currency, its value will decline or people will switch to ...
NBER WORKING PAPER SERIES ARE COUNTERCYCLICAL FISCAL POLICIES COUNTERPRODUCTIVE? David B. Gordon
... Economists generally believe that countercyclical fiscal policies have stabilizing effects that work through automatic stabilizers and discretionary actions. Analyses underlying this conventional wisdom focus on intratemporal margins: how employment and personal income respond in the short run to ch ...
... Economists generally believe that countercyclical fiscal policies have stabilizing effects that work through automatic stabilizers and discretionary actions. Analyses underlying this conventional wisdom focus on intratemporal margins: how employment and personal income respond in the short run to ch ...
Session 9 Introduction to national accounts
... identity of their own and are widely used by analysts, politicians, the press, the business community and the public at large as summary, global indicators of economic activity and welfare. Movements of such aggregates, and their associated price and volume measures, are used to evaluate the overall ...
... identity of their own and are widely used by analysts, politicians, the press, the business community and the public at large as summary, global indicators of economic activity and welfare. Movements of such aggregates, and their associated price and volume measures, are used to evaluate the overall ...
Balance Mechanics and Macroeconomic Paradoxes
... if there is excess planned saving through revenue surpluses, there will be an excess supply of goods and services, labour, and/or a shortfall in capital income, which in case of debt instruments amounts to default decline in revenues increases risk of default link to other paradoxes ...
... if there is excess planned saving through revenue surpluses, there will be an excess supply of goods and services, labour, and/or a shortfall in capital income, which in case of debt instruments amounts to default decline in revenues increases risk of default link to other paradoxes ...
Name: Date: ______ 1. The natural rate of unemployment is: A) the
... production function, same saving rate, same depreciation rate, and same rate of population growth) except that Country Large has a population of one billion workers and Country Small has a population of ten million workers, then the steady-state level of output per worker will be ______ and the stea ...
... production function, same saving rate, same depreciation rate, and same rate of population growth) except that Country Large has a population of one billion workers and Country Small has a population of ten million workers, then the steady-state level of output per worker will be ______ and the stea ...