Macroeconomic Effects Of Fiscal Policy

Author : Richard W. Kopcke,Geoffrey Matthew Bemis Tootell,Robert K. Triest
Publisher : Unknown
Page : 408 pages
File Size : 49,8 Mb
Release : 2006
Category : Business & Economics
ISBN : UCSC:32106018378684

Get Book

The Macroeconomics of Fiscal Policy by Richard W. Kopcke,Geoffrey Matthew Bemis Tootell,Robert K. Triest Pdf

Leading academics and former policy makers assess the effectiveness of postwar American fiscal policy as questions about the role of fiscal policy once again come to the forefront of economic research and debate. The United States's post-World War II emphasis on activist fiscal policy for short-term economic stabilization was called into question in the 1960s, and by the late 1980s was superseded by the view that fiscal policy should focus on long-run structural concerns. For the past two decades both public policy and economic research emphasized monetary policy as a stabilization tool. But there remain issues in American macroeconomic policy having to do with budget deficits, present and projected, as well as a recent revival of interest in fiscal policy as a stabilization tool. Overall, the academic pendulum is swinging back towards a renewed consideration of fiscal policy. This volume brings together leading researchers and policy makers to assess the effectiveness and consequences of fiscal policy. Drawing on postwar policy experience and recent economic research, this book offers a state-of-the-art consideration of where fiscal policy stands today. Contributors address both the appropriateness of fiscal policy as a tool for short-run macroeconomic stabilization and the longer-term impact of fiscal decisions and economic policy. Topics covered include the legacy of the Reagan administration's tax cuts; whether public policy has encouraged such behavior as "overconsumption," which may foster persistent budget and trade deficits; and, in light of recent experience, how and when fiscal policy might be appropriate as a short-term stabilization tool. Contributors Alan J. Auerbach, Susanto Basu, Olivier J. Blanchard, Alan S. Blinder, Barry P. Bosworth, W. Elliott Brownlee, William H. Buiter, Jonathan Coppel, Jean-Philippe Cotis, Luiz de Mello, James S. Duesenberry, Douglas W. Elmendorf, Eric Engen, Jeffrey A. Frankel, Benjamin M. Friedman, Richard W. Kopcke, Catherine L. Mann, Van Doorn Ooms, Rudolph G. Penner, Alice M. Rivlin, Christopher A. Sims, C. Eugene Steuerle, Geoffrey M.B. Tootell, Robert K. Triest, Edwin M. Truman

Author : Aschauer, David,Jeremy Greenwood,University of Western Ontario. Department of Economics,University of Western Ontario. Centre for the Study of International Economic Relations
Publisher : London : Department of Economics, University of Western Ontario
Page : 32 pages
File Size : 51,5 Mb
Release : 1984
Category : Electronic
ISBN : 0771405804

Get Book

Macroeconomic Effects of Fiscal Policy by Aschauer, David,Jeremy Greenwood,University of Western Ontario. Department of Economics,University of Western Ontario. Centre for the Study of International Economic Relations Pdf

Author : Aschauer, David,Jeremy Greenwood,University of Western Ontario. Department of Economics
Publisher : London : Department of Economics, University of Western Ontario
Page : 65 pages
File Size : 43,9 Mb
Release : 1985
Category : Fiscal policy
ISBN : 0771406134

Get Book

Macroeconomic Effects of Fiscal Policy by Aschauer, David,Jeremy Greenwood,University of Western Ontario. Department of Economics Pdf

Author : Farrokh Langdana
Publisher : Springer Science & Business Media
Page : 298 pages
File Size : 40,6 Mb
Release : 2009-04-05
Category : Business & Economics
ISBN : 9780387776668

Get Book

Macroeconomic Policy by Farrokh Langdana Pdf

This is an applications-oriented text that demystifies the linkages between monetary and fiscal policies and key macroeconomic variables such as income, unemployment, inflation and interest rates. Specially written "newspaper" articles simulate current macroeconomic news on asset-price bubbles, exchange rates, hyperinflation and more. Exercises and diagrams, and a global perspective – incorporating both developed and emerging economies - make this a broadly useful, real-world oriented text on a complex and shifting subject.

Author : Mr.Yan Carriere-Swallow,Mr.Antonio David,Mr.Daniel Leigh
Publisher : International Monetary Fund
Page : 42 pages
File Size : 49,5 Mb
Release : 2018-06-13
Category : Business & Economics
ISBN : 9781484364116

Get Book

The Macroeconomic Effects of Fiscal Consolidation in Emerging Economies: Evidence from Latin America by Mr.Yan Carriere-Swallow,Mr.Antonio David,Mr.Daniel Leigh Pdf

We estimate the short-term effects of fiscal consolidation on economic activity in 14 countries in Latin America and the Caribbean. We examine contemporaneous policy documents to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Based on this narrative dataset, our estimates suggest that fiscal consolidation has contractionary effects on GDP, consistent with a multiplier of 0.9. We find these effects to be close to those in OECD countries based on a similarly constructed dataset (Devries and others, 2011). We also find similar estimation results for the two groups of economies for the effect of fiscal consolidation on the external current account balance, providing support for the twin deficits hypothesis.

Author : Charles Amo-Yartey
Publisher : Nova Science Publishers
Page : 0 pages
File Size : 44,9 Mb
Release : 2015
Category : Fiscal policy
ISBN : 1634824083

Get Book

Fiscal Policy by Charles Amo-Yartey Pdf

Fiscal policy is an important factor influencing the growth performance of countries. However, compared to the large empirical literature on the effects of monetary policy on economic activity, fiscal policy has received less attention. In this book, the authors present current research in the study of fiscal policy and the macroeconomy as well as the challenges of fiscal policy in the current global environment. The book brings a global perspective to the practice of fiscal policy by presenting case studies from the United States, the European Union, and the Caribbean. Topics discussed in the book include international dimensions of fiscal policy, public debt and the economy, austerity versus stimulus and economic growth, the correction of economic imbalances in Europe, the long term impact of fiscal devaluation, the cyclicality of fiscal policy, the appropriate debt ceilings for small states, lessons from the banking union framework in the Euro Area, fiscal policy and competitiveness, policy lessons from debt restructuring in Jamaica, estimating the structural fiscal balance in small islands and fiscal policy rules and fiscal performance.

Author : Mr.Alberto Alesina,Mr.Roberto Perotti
Publisher : International Monetary Fund
Page : 52 pages
File Size : 41,7 Mb
Release : 1996-07-01
Category : Business & Economics
ISBN : 9781451960433

Get Book

Fiscal Adjustments in OECD Countries by Mr.Alberto Alesina,Mr.Roberto Perotti Pdf

This paper studies how the composition of fiscal adjustments influences their likelihood of “success”, defined as a long lasting deficit reduction, and their macroeconomic consequences. We find that fiscal adjustments which rely primarily on spending cuts on transfers and the government wage bill have a better chance of being successful and are expansionary. On the contrary fiscal adjustments which rely primarily on tax increases and cuts in public investment tend not to last and are contractionary. We discuss alterative explanations for these findings by studying both a full sample of OECD countries and by focusing on three case studies: Denmark, Ireland and Italy.

Author : Farrokh K. Langdana
Publisher : Springer Nature
Page : 358 pages
File Size : 44,8 Mb
Release : 2022-04-04
Category : Business & Economics
ISBN : 9783030920586

Get Book

Macroeconomic Policy by Farrokh K. Langdana Pdf

This book is an applications-oriented text designed for individuals who desire a hands-on approach to analyzing the effects of fiscal and monetary policies. Significantly updated for the fourth edition, the text provides an understanding of the global economy in the wake of the COVID crisis, discussing topics such as pandemic related supply and demand-side shocks, the role of Modern Monetary Theory (MMT) in financing COVID rescue plans, the effect of the US, India, Eurozone and China’s post-COVID economies on emerging and transitioning economies, and the resurgence of inflation. This edition includes deeper coverage on the issue of budget deficit sustainability and on trade wars, especially in a global context, and revisits the life cycles of speculative asset price (SAP) bubbles, especially in the housing markets and in SPACs. The fourth edition contains several brand-new cases and media articles that are carefully positioned to relate explicitly to theory, and to look ahead to and preempt global macro situations and polices in the years to come. MBA students and Executive MBA students who appreciate the importance of monetary and fiscal analysis will find this text to be right on target. Financial analysts and individual investors who need to strip away economic myths and jargon and systematically examine and understand the effects of macro policies on variables such as inflation, output, employment and interest rates, will also find the book extremely useful.

Author : Mr.Abdul Abiad,Davide Furceri,Petia Topalova
Publisher : International Monetary Fund
Page : 26 pages
File Size : 53,8 Mb
Release : 2015-05-04
Category : Business & Economics
ISBN : 9781475578874

Get Book

The Macroeconomic Effects of Public Investment by Mr.Abdul Abiad,Davide Furceri,Petia Topalova Pdf

This paper provides new evidence of the macroeconomic effects of public investment in advanced economies. Using public investment forecast errors to identify the causal effect of government investment in a sample of 17 OECD economies since 1985 and model simulations, the paper finds that increased public investment raises output, both in the short term and in the long term, crowds in private investment, and reduces unemployment. Several factors shape the macroeconomic effects of public investment. When there is economic slack and monetary accommodation, demand effects are stronger, and the public-debt-to-GDP ratio may actually decline. Public investment is also more effective in boosting output in countries with higher public investment efficiency and when it is financed by issuing debt.

Author : Jan Gottschalk,Rafael Portillo,Luis-Felipe Zanna,Mr.Andrew Berg
Publisher : International Monetary Fund
Page : 47 pages
File Size : 43,5 Mb
Release : 2010-07-01
Category : Business & Economics
ISBN : 9781455201433

Get Book

The Macroeconomics of Medium-Term Aid Scaling-Up Scenarios by Jan Gottschalk,Rafael Portillo,Luis-Felipe Zanna,Mr.Andrew Berg Pdf

We develop a model to analyze the macroeconomic effects of a scaling-up of aid and assess the implications of different policy responses. The model features key structural characteristics of low-income countries, including varying degrees of public investment efficiency and a learning-by-doing (LBD) externality that captures Dutch disease effects. On the policy front, it distinguishes between spending the aid, which is controlled by the fiscal authority, and absorbing the aid - financing a higher current account deficit - which is influenced by the central bank's reserve accumulation policies. We calibrate the model to Uganda and run several experiments. We find that a policy mix that results in full spending and absorption of aid can generate temporary demand and real exchange rate appreciation pressures, but also have a positive effect on real GDP in the medium term, through higher public capital. Full spending with partial absorption, on the other hand, may stem appreciation pressures but can also induce adverse medium-term real GDP effects, through private sector crowding out. When aid is very inefficiently invested and there are strong LBD externalities, aid can be harmful, and partial absorption policies may be justified. But in this case, a welfare improving solution is to defer spending or - even better if possible - raise its efficiency.

Author : Ms.Era Dabla-Norris,Frederico Lima
Publisher : International Monetary Fund
Page : 47 pages
File Size : 40,7 Mb
Release : 2018-09-28
Category : Business & Economics
ISBN : 9781484377451

Get Book

Macroeconomic Effects of Tax Rate and Base Changes: Evidence from Fiscal Consolidations by Ms.Era Dabla-Norris,Frederico Lima Pdf

This paper examines the macroeconomic effects of tax changes during fiscal consolidations. We build a new narrative dataset of tax changes during fiscal consolidation years, containing detailed information on the expected revenue impact, motivation, and announcement and implementation dates of nearly 2,500 tax measures across 10 OECD countries. We analyze the macroeconomic impact of tax changes, distinguishing between tax rate and tax base changes, and further separating between changes in personal income, corporate income, and value added tax. Our results suggest that base broadening during fiscal consolidations leads to smaller output and employment declines compared to rate hikes, even when distinguishing between tax types.

Author : Robert J. Barro
Publisher : Harvard University Press
Page : 400 pages
File Size : 46,7 Mb
Release : 1990
Category : Business & Economics
ISBN : 0674540808

Get Book

Macroeconomic Policy by Robert J. Barro Pdf

This is a collection of 13 papers by a leading proponent of new classical macroeconomics, published between 1981 and 1989. The papers are classified into three topical groups. The five papers in the first section, "Rules versus Discretion," provide an overview of the models and ideas that have been deployed in this policy debate. The next three papers investigate the impact of changes in the money supply on business cycles. The third category contains five papers that address various issues in fiscal policy. Of particular note is Barro's 1989 paper on the resuscitation of the Ricardian equivalence theorem. ISBN 0-674-54080-8: $37.50.

Author : Richard Hemming,Selma Mahfouz,Michael Kell
Publisher : International Monetary Fund
Page : 60 pages
File Size : 54,6 Mb
Release : 2002-12
Category : Business & Economics
ISBN : UCSD:31822032179210

Get Book

The Effectiveness of Fiscal Policy in Stimulating Economic Activity by Richard Hemming,Selma Mahfouz,Michael Kell Pdf

This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.

Author : Mr.Dennis P. J. Botman,Mr.Manmohan S. Kumar
Publisher : INTERNATIONAL MONETARY FUND
Page : 0 pages
File Size : 45,9 Mb
Release : 2006-03-01
Category : Business & Economics
ISBN : 1451863322

Get Book

Fundamental Determinants of the Effects of Fiscal Policy by Mr.Dennis P. J. Botman,Mr.Manmohan S. Kumar Pdf

We explore the underlying determinants of the macroeconomic effects of fiscal policy and tax and social security reform using the Global Fiscal Model (GFM). We show that the planning horizon of consumers, access to financial markets, and the elasticity of labor supply, as well as the characteristics of utility and production functions, and the degree of competition are all critical for determining the impact of fiscal policy. Four topical fiscal policy issues, for a representative large and small economy, are examined: the effects of changes in government debt; higher government spending; tax reform; and privatization of retirement savings.

Author : Dennis Petrus Johannes Botman,Manmohan S. Kumar
Publisher : International Monetary Fund
Page : 54 pages
File Size : 44,8 Mb
Release : 2006
Category : Fiscal policy
ISBN : UCSD:31822034374058

Get Book

Fundamental Determinants of the Effects of Fiscal Policy by Dennis Petrus Johannes Botman,Manmohan S. Kumar Pdf

We explore the underlying determinants of the macroeconomic effects of fiscal policy and tax and social security reform using the Global Fiscal Model (GFM). We show that the planning horizon of consumers, access to financial markets, and the elasticity of labor supply, as well as the characteristics of utility and production functions, and the degree of competition are all critical for determining the impact of fiscal policy. Four topical fiscal policy issues, for a representative large and small economy, are examined: the effects of changes in government debt; higher government spending; tax reform; and privatization of retirement savings.