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Chapter 12
Chapter 12

... • Changes in marginal tax rates, particularly high marginal rates, may exert an impact on aggregate supply because marginal tax rates influence the relative attractiveness of productive activity compared to leisure and tax avoidance. • Supply-side policies are designed to influence long-run growth ( ...
Working Paper No. 598 - Levy Economics Institute of Bard College
Working Paper No. 598 - Levy Economics Institute of Bard College

... still quite fragile and remained dependent on Western support and markets, as well as access to Western capital and know-how. CEE countries especially had become highly integrated into the global economy and the global financial structures, leaving them uniquely vulnerable to the breakdown of the fi ...
MetWest Total Return Bond Fund
MetWest Total Return Bond Fund

... advice before making any financial decisions. ©2017 Bloomberg Finance L.P. All rights reserved. Investment Risks It is important to note that the Fund is not guaranteed by the U.S. Government. Fixed income investments entail interest rate risk, the risk of issuer default, issuer credit risk, and pri ...
Liebman Disability Insurance JEP March 20
Liebman Disability Insurance JEP March 20

... 1970s to 3.6 percent in the years immediately preceding the 2007-2009 recession and 4.6 percent in 2013. Some experts have interpreted the increase as evidence of a need for significant reform. In this journal, Autor and Duggan (2006) describe the growth in the disability insurance rolls as "a fisca ...
Download attachment
Download attachment

... macroeconomic equilibrium in such a system. There is a tradition in economic theory which analyzes macroeconomic behavior in models where, unlike most macroeconomic analysis, there are no debt instruments and there is no fixed interest rate. This tradition began with the classic paper by Metzler (19 ...
NBER WORKING PAPER SERIES TAXATiON OF INVESTMENT THE CERTAINTY CASE
NBER WORKING PAPER SERIES TAXATiON OF INVESTMENT THE CERTAINTY CASE

... It is easy to show that t(N) t < t(tn). It also follows easily that cm(1 + rm(1 — cm(1 +rm(1 — t(m)) c(1 + ed). If t > r, then cm(1 + rm(1 — ri)) > c(1 + eq), and the corporation would prefer equity finance to borrowing in country rn. But if t < r, then CN(1 + rN(1 — ri)) < Cm(1 rm(1 — ri)), since c ...
INVESTMENT LED GROWTH IN INDIA: HINDU FACT OR
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... late seventies or early 1980’s and has been sustained by reforms through the 1990’s (Rodrik, and Subramanian 2004, Panagariya, 2004, Virmani 2004, Basu and Maertens 2007, Kotwal et al 2009). India’s growth rate of per capita income over the 50 year period, 1950-2000, was 3.2% per year. But since 200 ...
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... secretary and the Senate must confirm him/her. Once confirmed, the Treasury Secretary serves at the pleasure of the President. The President could fire the Treasury Secretary at any time. Like a treasury in any organization, the U.S. Treasury is responsible for collecting revenues and paying expense ...
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... equity held by non-tax-paying entities. The percentage of corporate equity held by these entities — namely pension funds, individual retirement accounts, and nonprofit organizations — increased from a few percent in 1962 to around 50 percent in 2000. In the early 1960s virtually no equity was held ...
Equity Composition Hypothesis
Equity Composition Hypothesis

...  When FDI is sold, the market does not know whether it is sold because of liquidity shock or because of low productivity.  Hence, the price direct investment must incur informational discount if sold before maturity. As a result, investors would tilt their investments towards FPI if they expect gr ...
Convergence Programme 2016 Update
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... EUR 19 million enabled Poland to sign 4 agreements with financial institutions, which should generate funding worth EUR 658 million intended to support investment projects undertaken by small and medium-sized enterprises. It is estimated that more than 10,000 small and medium-sized enterprises and s ...
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Social Health Insurance - Institut für Volkswirtschaftslehre und

... older as a result of the low level of birth rates since the 1970s and/or the continuously increasing life expectancy. For some countries both is the case which is why this phenomenon is sometimes referred to as the double-ageing process. While most of the political discussions addressing this fact p ...
Fixed exchange rates
Fixed exchange rates

... Under a fixed exchange rate system no individual country can change its interest rate if the other countries do not change theirs as well Two possible arrangements: i) all the member countries coordinate changes in their interest rates ii) one country takes the lead and the other follow ...
capbudgeting_leverage_old
capbudgeting_leverage_old

... AVCO decreases its debt according to the schedule provided here. Thus, one year later, it must decrease debt by 30.62 – 23.71 or 6.91 ...
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... A second policy lever is to shift the burden of tax to other areas of the economy. The three other main revenue-generating areas for government, as Chart 1 shows, are taxes on profits, spending and property. Environmental taxes represent an additional source of revenue which governments can tap. In ...
Fiscal Policy and Ricardian Equivalence
Fiscal Policy and Ricardian Equivalence

... In round 1, government spending goes up by 1 With no Ricardian equivalence, this generates 1 of income, which generates MPC of extra consumption in round 2. This extra MPC of consumption in round 2 generates MPC extra income, which generates MPC 2 of extra consumption in round 3, and so on: ...
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1 - Whitman People
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... level to increase. Therefore, there will be no price surprise and no change in the level of output. (b) If the government unexpectedly increases government spending, there will be a positive price surprise and firms will incorrectly believe that the price of their output has risen relative to other ...
Capital Budgeting Processes And Techniques
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... an investment’s cash flow projections may be stated in real terms.  Real cash flows only reflect current prices and do not incorporate upward adjustments for expected inflation.  Inflation Rule 2 — When project cash flows are stated in real rather than in nominal terms, the appropriate discount ra ...
IS JAPAN ‘BACK’? 2013 th
IS JAPAN ‘BACK’? 2013 th

... has fallen consistently since the onset of deflation and is now negative A rise in investment is actually a ‘good thing’ when your starting point is capital consumption (let’s glide over the data quality complications…) Raising dividends would also be a ‘good thing’ for profits because it would incr ...
Overall effect: Y
Overall effect: Y

... "Fiscal policy is more effective when the interest sensitivity of money demand is lower." False. If money demand is totally independent of interest rates, the LM-curve is vertical. This is the classical case. A change in government spending has no effect on output, since there is complete crowding o ...
fiscal policy strategy statement
fiscal policy strategy statement

... telecommunication networks, major ports or airports etc.). Since the Central Government does not own these assets, the resources transferred even for creation of physical infrastructure are shown as revenue expenditure. 13. In the present Act, when it is mandatory to eliminate revenue deficit, the p ...
Consumer Spending in China: The Past and the Future
Consumer Spending in China: The Past and the Future

... to the one-child policy) and fast urbanization. After 2000, however, the consumption share declined by more than would be expected from the country’s demographic and urbanization trends alone. This discrepancy is likely due to rapidly rising housing prices since the early 2000s, which increased hous ...
Stock market performance and pension fund investment policy
Stock market performance and pension fund investment policy

... holdings surfaced after the collapse of the stock market in 2000-2002, which resulted in large losses for pension funds. In reaction, pension benefits were curtailed and contributions steeply increased. This episode raised a debate on the investment strategies of Dutch pension funds and, particularl ...
rPFM(02-RAR)08
rPFM(02-RAR)08

... the basis of expected return  The use of expected reminds us that nothing is certain  Actual return may be far from the expected value  The mean return (see later) is an estimate of the expected return ...
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Pensions crisis

The pensions crisis is a predicted difficulty in paying for corporate, state, and federal pensions in the United States and Europe, due to a difference between pension obligations and the resources set aside to fund them. Shifting demographics are causing a lower ratio of workers per retiree; contributing factors include retirees living longer (increasing the relative number of retirees), and lower birth rates (decreasing the relative number of workers, especially relative to the Post-WW2 Baby Boom). There is significant debate regarding the magnitude and importance of the problem, as well as the solutions.For example, as of 2008, the estimates for the underfunding of U.S. states' pension programs range from $1 trillion using the discount rate of 8% to $3.23 trillion using U.S. Treasury bond yields as the discount rate. The present value of unfunded obligations under Social Security as of August 2010 was approximately $5.4 trillion. In other words, this amount would have to be set aside today such that the principal and interest would cover the program's shortfall between tax revenues and payouts over the next 75 years.Some economists question the concept of funding, and, therefore underfunding. Storing funds by governments, in the form of fiat currencies, is the functional equivalent of storing a collection of their own IOUs. They will be equally inflationary to newly written ones when they do come to be used.Reform ideas are in three primary categories: a) Addressing the worker-retiree ratio, via raising the retirement age, employment policy and immigration policy; b) Reducing obligations via shifting from defined benefit to defined contribution pension types and reducing future payment amounts (by, for example, adjusting the formula that determines the level of benefits); and c) Increasing resources to fund pensions via increasing contribution rates and raising taxes.
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