Download or read book Dynamic Fiscal Policy with Endogenous Human Capital written by Wayne Robert Hickenbottom and published by . This book was released on 1992 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Dynamic fiscal policy with endogenous human capital written by Wayne R. Hickenbottom and published by . This book was released on 1994 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Fiscal Policy in an Endogenous Growth Model with Human Capital Accumulation written by Salvador Ortigueira and published by . This book was released on 1996 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Taxation and Endogenous Growth in Open Economies written by Mr.Gian Milesi-Ferretti and published by International Monetary Fund. This book was released on 1994-07-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the effects of taxation of human capital, physical capital and foreign assets in a multi-sector model of endogenous growth. It is shown that in general the growth rate is reduced by taxes on capital and labor (human capital) income. When the government faces no borrowing constraints and is able to commit to a given set of present and future taxes, it is shown that the optimal tax plan involves high taxation of both capital and labor in the short run. This allows the government to accumulate sufficient assets to finance spending without any recourse to distortionary taxation in the long run. When restrictions to government borrowing and lending are imposed, the model implies that human and physical capital should be taxed similarly.

Download or read book The Dynamic Effects of Taxes and Government Spending in a Calibrated Canadian Endogenous Growth Model written by Jing Xu and published by . This book was released on 1997 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Design of Fiscal Reform Packages written by Andrew Hodge and published by International Monetary Fund. This book was released on 2016-08-20 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the impact on growth, welfare, and government debt of fiscal reform packages in a theoretical model drawing together three key features of the endogenous growth literature: (i) investment in technology (in the form of human capital) offsets diminishing marginal productivity of private capital, allowing for perpetual growth in output per capita; (ii) changes in investment behavior because of cuts to distortionary tax rates impact long-run growth; and (iii) public capital has a role influencing total factor productivity and growth. A quantitative simulation using reasonable parameter values suggests that modest capital and/or labor income tax cuts and public investment increases have significant positive effects on consumer welfare but small effects on per capita income growth, where fiscal costs are offset by reductions in unproductive government spending. Capital income tax cuts and public investment increases continue to boost welfare when offset by consumption tax rises (rather than spending cuts), although the welfare benefits of modest labor income tax cuts are outweighed by the costs of a compensating consumption tax increase.

Download or read book Fiscal Policy Public Expenditure Composition and Growth written by Willi Semmler and published by World Bank Publications. This book was released on 2007 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This paper responds to the development policy debate involving the World Bank and the IMF on the use of fiscal policy not only for economic stabilization but also to promote economic growth and increase per capita income. A key issue in this debate relates to the effect of the composition of public expenditure on economic growth. Policy makers and some researchers have argued that expenditure on growth-enhancing functions could enhance future revenue and justify the provision of "fiscal space" in the budget. But there are no simple ways to identify the growth-maximizing composition of public expenditure. The current paper lays out a research strategy to explore the effects of fiscal policy, including the composition of public expenditure, on economic growth, using a time series approach. Based on the modeling strategy of Greiner, Semmler and Gong (2005) we develop a general model that features a government that undertakes public expenditure on (a) education and health facilities which enhance human capital, (b) public infrastructure such as roads and bridges necessary for market activity, (c) public administration to support government functions, (d) transfers and public consumption facilities, and (e) debt service. The proposed model is numerically solved, calibrated and the impact of the composition of public expenditure on the long-run per capita income explored for low-, lower-middle- and upper-middle-income countries. Policy implications and practical policy rules are spelled out, the extension to an estimable model indicated, a debt sustainability test proposed, and the out-of-steady-state dynamics studied.

Download or read book Dynamic Fiscal Policy written by Alan J. Auerbach and published by . This book was released on 1988 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Fiscal Policy in Human Capital Endogenous Growth Models written by Don I. Asoka Wöhrmann and published by . This book was released on 1998 with total page 155 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Human Capital and Public Policy in an Endogenously Growing Economy with Externalities written by Manachaya Uruyos and published by . This book was released on 2003 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Dynamic Economy with Heterogeneous Agents written by Yulei Peng and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays about heterogeneous agents in the dynamic economy and how to deal with the asymmetric information arose by heterogeneity. Firstly, I consider the optimal taxation issue in a dynamic endogenous growth model with considering human capital accumulation, and agents ability is heterogeneous and private information. Moreover, the agents with higher ability have positive external effects on others. By using the two-sector endogenous model, I show that it is optimal to impose different income and capital income taxes on people with different abilities. Specifically, positive marginal income tax is adopted for people with lower ability while no tax is imposed for people with higher ability; marginal capital income tax is zero whatever the agent's is low or high. As for people using the capital and labor for human capital accumulation, the government should subsidize them whatever their ability is. Secondly, I study the optimal monetary and fiscal policy with heterogeneous agents based on the search-theoretical environment where money is essential and consider the private information. I first solve the households' problem in the centralized and decentralized market, and find out the optimal conditions. Then, in this section, I describe the problem that social planner faces by involving uncertainty and agents whose types are continuous. By comparing the optimal conditions in this generous setting, I show that the Friedman rule is no longer optimal when jointed with nonlinear taxation of income. Moreover, the capital income taxation is not zero. Moreover, I constructs a general theoretical model to consider two kinds of financial frictions in the economy with financial intermediaries. By quantitative analysis the model with three separate shocks which are a negative collateral shock, a negative productivity shock and a positive shock to bankers' divert rate, I find that a negative collateral shock which tightens firms' financing constraints on investment can generate an equity price boom which is different from what is observed in recessions. Therefore, the collateral shock is not the main reason for the business cycle, while the negative productivity shock and bankers' moral hazard problem are more important aspects to explain current economy. The electronic version of this dissertation is accessible from http://hdl.handle.net/1969.1/151328

Download or read book The Effects of Fiscal Policy on Human Capital Accumulation written by K. Peren Arin and published by . This book was released on 2007 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: By using dynamic panel data estimation techniques for twenty-one OECD countries, this paper investigates the effects of government expenditures and four different types of tax policy innovations on the human capital accumulation process. Our results show that only income taxes have a significant negative effect on investment in human capital, measured by the tertiary enrolment rate.

Download or read book Fiscal Policy and Long Term Growth written by International Monetary Fund and published by International Monetary Fund. This book was released on 2015-04-20 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.

Download or read book Hysteresis and Business Cycles written by Ms.Valerie Cerra and published by International Monetary Fund. This book was released on 2020-05-29 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditionally, economic growth and business cycles have been treated independently. However, the dependence of GDP levels on its history of shocks, what economists refer to as “hysteresis,” argues for unifying the analysis of growth and cycles. In this paper, we review the recent empirical and theoretical literature that motivate this paradigm shift. The renewed interest in hysteresis has been sparked by the persistence of the Global Financial Crisis and fears of a slow recovery from the Covid-19 crisis. The findings of the recent literature have far-reaching conceptual and policy implications. In recessions, monetary and fiscal policies need to be more active to avoid the permanent scars of a downturn. And in good times, running a high-pressure economy could have permanent positive effects.

Download or read book The New Dynamic Public Finance written by Narayana R. Kocherlakota and published by Princeton University Press. This book was released on 2010-07-01 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: Optimal tax design attempts to resolve a well-known trade-off: namely, that high taxes are bad insofar as they discourage people from working, but good to the degree that, by redistributing wealth, they help insure people against productivity shocks. Until recently, however, economic research on this question either ignored people's uncertainty about their future productivities or imposed strong and unrealistic functional form restrictions on taxes. In response to these problems, the new dynamic public finance was developed to study the design of optimal taxes given only minimal restrictions on the set of possible tax instruments, and on the nature of shocks affecting people in the economy. In this book, Narayana Kocherlakota surveys and discusses this exciting new approach to public finance. An important book for advanced PhD courses in public finance and macroeconomics, The New Dynamic Public Finance provides a formal connection between the problem of dynamic optimal taxation and dynamic principal-agent contracting theory. This connection means that the properties of solutions to principal-agent problems can be used to determine the properties of optimal tax systems. The book shows that such optimal tax systems necessarily involve asset income taxes, which may depend in sophisticated ways on current and past labor incomes. It also addresses the implications of this new approach for qualitative properties of optimal monetary policy, optimal government debt policy, and optimal bequest taxes. In addition, the book describes computational methods for approximate calculation of optimal taxes, and discusses possible paths for future research.

Download or read book The Effectiveness of Fiscal Policy in Stimulating Economic Activity written by Richard Hemming and published by International Monetary Fund. This book was released on 2002-12 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Growth Effects of Income and Consumption Taxes written by Mr.Gian Milesi-Ferretti and published by International Monetary Fund. This book was released on 1995-07-01 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The effects of income and consumption taxation are examined in the context of models in which the growth process is driven by the accumulation of human and physical capital. The different channels through which these taxes affect economic growth are discussed, and it is shown that in general the taxation of factor incomes (human and physical capital) is growth-reducing. The effects of consumption taxation on growth depend crucially on the elasticity of labor supply, and therefore on the specification of the leisure activity. The paper also derives some implications for the optimal intertemporal choice of tax instruments.