The 1920s and the 1990s in Mutual Reflection
... With the 1913:1984 to 1932:2003 alignment, Figure 1 displays the astonishing similarity of real GDP growth in the 1920s and 1990s. With a base year of 1929=2000=100, we note that the growth rate of real GDP was identical over the intervals 1913-29 and 1984-2000, or alternatively between 1919-29 and ...
... With the 1913:1984 to 1932:2003 alignment, Figure 1 displays the astonishing similarity of real GDP growth in the 1920s and 1990s. With a base year of 1929=2000=100, we note that the growth rate of real GDP was identical over the intervals 1913-29 and 1984-2000, or alternatively between 1919-29 and ...
1 - EcoMod
... government expenditure is positively linked to economic growth when the share of government expenditure (and consequently the tax rate) is low, but then turns negative due to increasing inefficiencies as the share of expenditure increases (related to the disincentive effect of higher tax rates on p ...
... government expenditure is positively linked to economic growth when the share of government expenditure (and consequently the tax rate) is low, but then turns negative due to increasing inefficiencies as the share of expenditure increases (related to the disincentive effect of higher tax rates on p ...
keynesian multiplier effects
... INCREASED the GDP by $100B The Tax INCREASE has DECREASED the GDP by -80B. BOTTON LINE: GDP (AGGREGATE DEMAND) has INCREASED by $20B!! The Miracle of the Keynesian Multiplier… NOTE: This works in REVERSE as well. If Government Spending DECREASED by $20B and DECREASED Taxes by $20B, then the NET EFFE ...
... INCREASED the GDP by $100B The Tax INCREASE has DECREASED the GDP by -80B. BOTTON LINE: GDP (AGGREGATE DEMAND) has INCREASED by $20B!! The Miracle of the Keynesian Multiplier… NOTE: This works in REVERSE as well. If Government Spending DECREASED by $20B and DECREASED Taxes by $20B, then the NET EFFE ...
Macroeconomic Performance and Volatility of Turkish Republic of
... Table 10. Average of General government balance ................................................... 32 Table 11. Average of unemployment ......................................................................... 34 Table 12. Summary of volatility of selected macroeconomic parameters ................. ...
... Table 10. Average of General government balance ................................................... 32 Table 11. Average of unemployment ......................................................................... 34 Table 12. Summary of volatility of selected macroeconomic parameters ................. ...
Green Agrowth as a Third Option: Removing the GDP
... modest to negligible 2 (van den Bergh, 2009). But why do national and international statistical organizations spend so much time and money then on calculating and predicting the GDP? And how does this view match with banks and financial markets responding so strongly to any information about the GDP ...
... modest to negligible 2 (van den Bergh, 2009). But why do national and international statistical organizations spend so much time and money then on calculating and predicting the GDP? And how does this view match with banks and financial markets responding so strongly to any information about the GDP ...
Targeting Nominal GDP or Prices: Expectation Dynamics and the Interest Rate
... broader applicability than inflation targeting and Taylor rules. In a standard NK model the Fisher equation = −1 , where is the gross interest rate, is the subjective discount factor and is the gross inflation rate, is a key equation for a nonstochastic steady state. Usually the interest ...
... broader applicability than inflation targeting and Taylor rules. In a standard NK model the Fisher equation = −1 , where is the gross interest rate, is the subjective discount factor and is the gross inflation rate, is a key equation for a nonstochastic steady state. Usually the interest ...
deficit spending and stabilization behaviour in austria
... budget consolidation phase) dampened neither strains nor recessions. The same result is reached when looking only at the beginnings of recessions and strains. The overall assessment of stabilization behaviour, including discretionary budget impacts and reactions, leads to the conclusion that the lat ...
... budget consolidation phase) dampened neither strains nor recessions. The same result is reached when looking only at the beginnings of recessions and strains. The overall assessment of stabilization behaviour, including discretionary budget impacts and reactions, leads to the conclusion that the lat ...
1999 South-Western College Publishing
... The difference in real GDP between a less than full employment equilibrium and the real GDP at the full employment equilibrium ©1999 South-Western College Publishing ...
... The difference in real GDP between a less than full employment equilibrium and the real GDP at the full employment equilibrium ©1999 South-Western College Publishing ...
How Large Are The Political Costs of Fiscal Austerity?
... leaders only cut expenditures if they think that they can do so without getting thrown out of power. One possibility for dealing with this is to use an instrumental variables strategy. To do so we need to find a factor that prompts governments to cut expenditures but which has no direct impact on th ...
... leaders only cut expenditures if they think that they can do so without getting thrown out of power. One possibility for dealing with this is to use an instrumental variables strategy. To do so we need to find a factor that prompts governments to cut expenditures but which has no direct impact on th ...
McEachern Chapter 9 PPT
... • Problems with this model – The elderly do not seem to draw down their assets as much as the theory predicts • Some want to leave bequests to children • Particularly concerned about covering ...
... • Problems with this model – The elderly do not seem to draw down their assets as much as the theory predicts • Some want to leave bequests to children • Particularly concerned about covering ...
On the determinants of firms` financial surpluses and deficits
... corporate payouts to investors in the form of dividends and equity buybacks have also increased: this is inconsistent with the idea that prudent firms were cutting investments to strengthen their balance sheets. However the opinion that firms reduce their investments because of financial issues is ...
... corporate payouts to investors in the form of dividends and equity buybacks have also increased: this is inconsistent with the idea that prudent firms were cutting investments to strengthen their balance sheets. However the opinion that firms reduce their investments because of financial issues is ...
Temporal Causality between House Prices and Output
... house price index and real GDP per capita, using bootstrap full- and sub-sample rollingwindow estimation for the U.S. economy. Empirical studies that examine the causal relationships between variables may suffer from inaccurate findings from full-sample timeseries data, when the data series experien ...
... house price index and real GDP per capita, using bootstrap full- and sub-sample rollingwindow estimation for the U.S. economy. Empirical studies that examine the causal relationships between variables may suffer from inaccurate findings from full-sample timeseries data, when the data series experien ...
Economic Outlook 2012
... “ If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coal mines … It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.” (Keynes, ...
... “ If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coal mines … It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.” (Keynes, ...
Fiscal Shocks and Real Wages Agustín S. Bénétrix IIIS Trinity College Dublin
... A shock of 1 percent of GDP produces positive impact and delayed responses in real wages and GDP. The impact wage response equals to 0.95 percent and it is statistically significant at a level of 1 percent. As shown in the first column of Table 1, the point estimate of the mean wage response is stat ...
... A shock of 1 percent of GDP produces positive impact and delayed responses in real wages and GDP. The impact wage response equals to 0.95 percent and it is statistically significant at a level of 1 percent. As shown in the first column of Table 1, the point estimate of the mean wage response is stat ...
Fourth Edition - Mac OS X Server
... The International-Trade Effect: How a Change in the Price Level Affects Net Exports Net exports equal spending by foreign households and firms on goods and services produced in the United States minus spending by U.S. households and firms on goods and services produced in other countries. A higher p ...
... The International-Trade Effect: How a Change in the Price Level Affects Net Exports Net exports equal spending by foreign households and firms on goods and services produced in the United States minus spending by U.S. households and firms on goods and services produced in other countries. A higher p ...
This PDF is a selection from a published volume
... results are not changed by the inclusion of 'rule of thumb' consumers (which augments the effect of fiscal shocks on aggregate demand). The large inflation differentials observed in the Euro area do not, according to our models, point to the need for coordination of national fiscal policies. • Our m ...
... results are not changed by the inclusion of 'rule of thumb' consumers (which augments the effect of fiscal shocks on aggregate demand). The large inflation differentials observed in the Euro area do not, according to our models, point to the need for coordination of national fiscal policies. • Our m ...
The Economic Benefits of Public Infrastructure Spending in Canada
... domestic product (GDP), employment, and government finances over time, by sector, and by province. Spending multipliers and return on investment statistics are generated to provide summary measures of the results and provide a compelling case for funding a public infrastructure program where public ...
... domestic product (GDP), employment, and government finances over time, by sector, and by province. Spending multipliers and return on investment statistics are generated to provide summary measures of the results and provide a compelling case for funding a public infrastructure program where public ...
Is Government Spending at the Zero Lower Bound Desirable?
... Rebelo (2011) (CER 2011 henceforth), Eggertsson (2010), and Woodford (2011), among others. The key reason it that, at the ZLB, the output multiplier of government spending can be much larger than in normal times. In a model with sticky prices, if the nominal interest rate is constrained by the ZLB, ...
... Rebelo (2011) (CER 2011 henceforth), Eggertsson (2010), and Woodford (2011), among others. The key reason it that, at the ZLB, the output multiplier of government spending can be much larger than in normal times. In a model with sticky prices, if the nominal interest rate is constrained by the ZLB, ...
“Good Governance” in Monetary Policy and the Negative Real
... In other words, inflation targeting can be seen as the latest representative of a tradition that excludes real variables from the set of possible influences of monetary policy. This tradition is ultimately based on the belief that there exists some sort of long-run equilibrium (natural) rate of outp ...
... In other words, inflation targeting can be seen as the latest representative of a tradition that excludes real variables from the set of possible influences of monetary policy. This tradition is ultimately based on the belief that there exists some sort of long-run equilibrium (natural) rate of outp ...
Fiscal spending multiplier calculations based on Input
... larger than one. For instance, if the share of liquidity constrained households reaches 50%, the impact multiplier equals about 1.8. However, the precise calibration of this share and correspondingly the question whether government spending crowds in consumption or not has remained controversial. T ...
... larger than one. For instance, if the share of liquidity constrained households reaches 50%, the impact multiplier equals about 1.8. However, the precise calibration of this share and correspondingly the question whether government spending crowds in consumption or not has remained controversial. T ...
Automatic Fiscal Stabilisers - European Commission
... The post-2007 economic and financial crisis has reopened the debate on the effectiveness of fiscal policy as a tool of stabilisation of economic activity, including the relative merits of discretionary action versus automatic stabilisation. On one side of the debate, people have argued that discreti ...
... The post-2007 economic and financial crisis has reopened the debate on the effectiveness of fiscal policy as a tool of stabilisation of economic activity, including the relative merits of discretionary action versus automatic stabilisation. On one side of the debate, people have argued that discreti ...
- Department of Economics
... consolidation efforts increases the probability of success and persistence. These findings are related to Easterly’s (1999: 57) statement that “[f]iscal adjustment is an illusion when it lowers the budget deficit or public debt but leaves government net worth unchanged”. According to Easterly (1999) ...
... consolidation efforts increases the probability of success and persistence. These findings are related to Easterly’s (1999: 57) statement that “[f]iscal adjustment is an illusion when it lowers the budget deficit or public debt but leaves government net worth unchanged”. According to Easterly (1999) ...
Macroeconomic Effects of Fiscal Policy
... out – much faster than in studies for other countries. Already after one year, the fiscal multiplier is no longer significantly greater than zero. Thus the effect on GDP of fiscal expansion gradually dies out as the stimulus itself is removed. This would indicate that the dynamic effects of changes ...
... out – much faster than in studies for other countries. Already after one year, the fiscal multiplier is no longer significantly greater than zero. Thus the effect on GDP of fiscal expansion gradually dies out as the stimulus itself is removed. This would indicate that the dynamic effects of changes ...