Automatic Stabilizers, Fiscal Rules and Macroeconomic Stability*
... the model, distortionary taxes deliver less output variability than lump-sum ones. This is what text-book Keynesian models of the economy would predict but it is in stark contrast with the results obtained by Galí (1994) in a standard RBC framework. Additionally we show that looking at the correlati ...
... the model, distortionary taxes deliver less output variability than lump-sum ones. This is what text-book Keynesian models of the economy would predict but it is in stark contrast with the results obtained by Galí (1994) in a standard RBC framework. Additionally we show that looking at the correlati ...
Comment by Jonas Agell - Government Offices of Sweden
... consumption in most countries. Sweden, however, stands out as an exception; in spite of the fact that Jappelli and Pagano rely on data for a period when credit market regulations were largely intact, they conclude that iis not significantly different from zero. Somewhat conflicting evidence is repor ...
... consumption in most countries. Sweden, however, stands out as an exception; in spite of the fact that Jappelli and Pagano rely on data for a period when credit market regulations were largely intact, they conclude that iis not significantly different from zero. Somewhat conflicting evidence is repor ...
Fiscal Policy and Economic Growth: Volatility Vs the Levels*
... Contrary to this view, the Ricardian equivalence proposition suggests that government deficit has no effect on economic growth. Because current government deficits must eventually be paid with higher taxes in the future, households will save more now to pay the higher taxes in the future.1 Another e ...
... Contrary to this view, the Ricardian equivalence proposition suggests that government deficit has no effect on economic growth. Because current government deficits must eventually be paid with higher taxes in the future, households will save more now to pay the higher taxes in the future.1 Another e ...
answer key - U of L Personal Web Sites
... 29. Calculate GDP using the table above. A) 5,570. B) 5,600. C) 6,050. D) 6,320. Ans: B 30. If you know that a meal costing $40 in Canada would cost $2 in Bangladesh and that this is representative of the relative prices of most goods, you also know that A) purchasing power parity would decrease com ...
... 29. Calculate GDP using the table above. A) 5,570. B) 5,600. C) 6,050. D) 6,320. Ans: B 30. If you know that a meal costing $40 in Canada would cost $2 in Bangladesh and that this is representative of the relative prices of most goods, you also know that A) purchasing power parity would decrease com ...
fiscal multipliers in recession and expansion
... economy is in recession. In a recent paper (Auerbach and Gorodnichenko, 2011), we extended the standard Structural Vector Autoregression (SVAR) methodology in three ways to shed light on this issue. First, using regime-switching models, we estimated effects of fiscal policies that can vary over the ...
... economy is in recession. In a recent paper (Auerbach and Gorodnichenko, 2011), we extended the standard Structural Vector Autoregression (SVAR) methodology in three ways to shed light on this issue. First, using regime-switching models, we estimated effects of fiscal policies that can vary over the ...
Student_Chapter 17 Lecture Notes
... economy’s factors of production are fully employed. We produce the goods and services that make up real GDP by using factors of production: labor and human capital, physical capital, land, and entrepreneurship. At any given time, the quantities of human capital, physical capital, land, entrepreneurs ...
... economy’s factors of production are fully employed. We produce the goods and services that make up real GDP by using factors of production: labor and human capital, physical capital, land, and entrepreneurship. At any given time, the quantities of human capital, physical capital, land, entrepreneurs ...
This PDF is a selection from a published volume from... of Economic Research
... General government gross financial liabilities as of 2010 (percent of GDP) ...
... General government gross financial liabilities as of 2010 (percent of GDP) ...
OPTIMAL LABOR CONTRACTS, IMPERFECT A FRAMEWORK FOR ANALYSIS Working Paper No. 2060
... The model of imperfect competition explored here has as a key feature the underutilization of workers. As a consequence, increases ...
... The model of imperfect competition explored here has as a key feature the underutilization of workers. As a consequence, increases ...
The Labor Market, Unemployment, and Inflation
... • If labor demand decreases, the equilibrium wage will fall. • Anyone who wants a job at W1 will have one. There is always full employment in this sense. Principles of Economics, 7/e ...
... • If labor demand decreases, the equilibrium wage will fall. • Anyone who wants a job at W1 will have one. There is always full employment in this sense. Principles of Economics, 7/e ...
Document
... Over the years, real GDP in the U.S. has grown at about 3 percent per year; however, there has been a great deal of fluctuation around this trend. These recurring fluctuations in the level of economic activity are known as business cycles. The various phases of a cycle include the expansion and cont ...
... Over the years, real GDP in the U.S. has grown at about 3 percent per year; however, there has been a great deal of fluctuation around this trend. These recurring fluctuations in the level of economic activity are known as business cycles. The various phases of a cycle include the expansion and cont ...
Chapter 12
... • The LM curve and AD curve shift to the right. • The real interest rate falls, the price level rises, the real wage falls, firms hire more labor, real output increases, consumption rises, investment rises. • Money is not neutral in the short run when nominal wages are sticky. ...
... • The LM curve and AD curve shift to the right. • The real interest rate falls, the price level rises, the real wage falls, firms hire more labor, real output increases, consumption rises, investment rises. • Money is not neutral in the short run when nominal wages are sticky. ...
Comments on Stefan Niemann and Jürgen von Hagen
... (2007). A recent but growing literature has shown that monetary policy may have real effects, even under flexible prices when there is non-atomistic wage setting. The reason is that, recognising that they ...
... (2007). A recent but growing literature has shown that monetary policy may have real effects, even under flexible prices when there is non-atomistic wage setting. The reason is that, recognising that they ...
An Empirical Investigation of Structural Breaks
... significance level. In other words the LP test results are somewhat mixed as five out of the 10 variables, i.e. Ln(Pc) Ln(Gc) and Ln(X), Ln(CPI), and Ln(Ms) are not stationary, while the remaining variables contain a unit root. Given the fact that all of the estimated coefficients for the indicator ...
... significance level. In other words the LP test results are somewhat mixed as five out of the 10 variables, i.e. Ln(Pc) Ln(Gc) and Ln(X), Ln(CPI), and Ln(Ms) are not stationary, while the remaining variables contain a unit root. Given the fact that all of the estimated coefficients for the indicator ...
Macroeconomic Determinants of Loan Portfolio Credit Risk in Banks
... economy is moving (real GDP growth, the change in consumer sentiment, etc.). 3. Factors of financial market conditions (interest rates, stock market returns, etc.). Festic, Kavkler, Repina (2011) affirm that changes in the macroeconomic environment translate into changes in the quality of a loan por ...
... economy is moving (real GDP growth, the change in consumer sentiment, etc.). 3. Factors of financial market conditions (interest rates, stock market returns, etc.). Festic, Kavkler, Repina (2011) affirm that changes in the macroeconomic environment translate into changes in the quality of a loan por ...
Investments
... Higher taxes on incomes serve to dampen inflation expectations in general Higher taxes on goods and services (VAT) will increase very short-term inflation, but erode consumer spending power in the medium-term All these measures are unpopular – the economic environment will depend on the extent of an ...
... Higher taxes on incomes serve to dampen inflation expectations in general Higher taxes on goods and services (VAT) will increase very short-term inflation, but erode consumer spending power in the medium-term All these measures are unpopular – the economic environment will depend on the extent of an ...
Phillips curve
... Phillips curve • The higher the expected rate of inflation, the higher the short-run tradeoff between inflation and unemployment. At point A, expected inflation and actual inflation are both low, and unemployment is at in its natural rate. If the Fed pursues an expansionary monetary policy. The econ ...
... Phillips curve • The higher the expected rate of inflation, the higher the short-run tradeoff between inflation and unemployment. At point A, expected inflation and actual inflation are both low, and unemployment is at in its natural rate. If the Fed pursues an expansionary monetary policy. The econ ...
The Dynamic Macro Model with Money
... Md is the demand of money in the economy P the average/general price level of the economy Y is the total output of our economy PY is the total value of the output of our economy X*[R] i ...
... Md is the demand of money in the economy P the average/general price level of the economy Y is the total output of our economy PY is the total value of the output of our economy X*[R] i ...
