Download or read book Essays on Fiscal Policy and Government Debt written by Fernando Maximiliano Martin and published by . This book was released on 2005 with total page 107 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Fiscal Policy and Government Debt written by Sigrid Röhrs and published by . This book was released on 2011 with total page 199 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Public Debts written by Henry Carter Adams and published by New York : D. Appleton. This book was released on 1895 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Monetary and Fiscal Policy written by Ruoyun Mao and published by . This book was released on 2020 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt: The dissertation consists of three essays studying the effects of monetary and fiscal policy. The first chapter, ''Policy Uncertainty and Government Spending Effects'' (joint with Shu-Chun Yang), studies government spending multipliers in a low nominal interest rate environment. Using a fully nonlinear New Keynesian model, this chapter shows government spending multipliers can decrease when 1) the initial debt-to-GDP ratio is higher, 2) the tax rate is higher, 3) debt maturity is longer, and 4) monetary policy is more responsive to inflation. When monetary and fiscal policy regimes can switch, policy uncertainty also reduces spending multipliers. If higher inflation induces a rising probability of switching to a regime where monetary policy actively controls inflation and fiscal policy raises future taxes to stabilize government debt, the multipliers can fall much below unity.The second chapter is a joint work with Zhao Han and Xiaohan Ma and studies how dispersed information impacts inflation, inflation expectations, and the Phillips curve by analytically solving a price-setting problem with nominal rigidity and informational frictions. The analytical representations enable us to recover the underlying parameters with data from the Survey of Professional Forecasters (SPF) and quantify the effects of dispersed information. The estimation results show dispersed information plays an important role in generating persistent inflation forecast errors and non-zero nowcast errors, as observed in the SPF data, but the effects of higher-order expectations on the Phillips curve are quantitatively small.The last chapter derives the optimal monetary policy when firms only have limited capacity to process information. The result shows marginal cost of attention is the key to determining the trade-off between the central bank's dual mandates. When the marginal cost is low, monetary policy aiming at stabilizing the output gap attracts attention from the private sector and generates inefficient price dispersion; Increasing the marginal cost of attention can eliminate the trade-off. A comparison between a rule-based policy and a discretionary policy confirms welfare gain from commitment. Firms pay extra attention to the policy signal when it is discretionary, which generates more price dispersion and harms welfare.

Download or read book Essays on Fiscal Deficit Debt and Monetary Policy written by Haydory Akbar Ahmed and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This essay empirically investigates the dynamics between government debt and budget deficits in the United States during a recession as opposed to an expansion. We use four different budget deficits definitions to develop a more comprehensive insight. We estimate a threshold VAR model on quarterly data from 1947: Q1 to 2016: Q3 on debt to GDP and budget deficits to GDP ratio for the United States. Specification test using LR test rejects the null for a linear VAR against nonlinear VAR. The nonlinear impulse responses indicate, with an increase to budget deficits to GDP ratio, government debt to GDP ratio rise faster during a recession as opposed to an expansion, and tend to move in a counter-cyclical manner with an increase in the output gap. We can thus infer that governments chose economic stability over fiscal balance during recessions. With an increase in government debt to GDP ratio, nonlinear impulse response show budget deficits to GDP ratio grow faster during an expansion as opposed to a recession and exhibit counter-cyclicality with an increase in the output gap. All four budget defi cits definitions depict similar pattern. Robustness check, using cyclically adjusted primary budget deficit published by the congressional Budget Office, also con rm the above findings. In this essay, we explore the presence of a long run relationship between the monetary base and the government debt using monthly data from 1942:1 to 2015:12. We apply formal statistical methods including cointegration and threshold cointegration tests to investigate the presence of a long-run relationship and estimate a threshold vector error-correction model (TVECM henceforth) to analyze the short-run dynamics. We find the presence of a threshold cointegration between the monetary base and government debt. As for the short-run dynamics, TVECM estimates show that the speed of adjustment is significant for the growth in debt equation in both regimes with the signs indicating government adjusting the debt in the short-run. But the U.S. Fed does not change the monetary base, hence we do not find any evidence of debt monetization in the U.S. We evaluate our findings over two sub-samples: 1946 to 2015 and 1946 to 2007 for robustness purposes. Findings from both sub-samples conform to our findings from the full sample. In this essay, we investigate the impacts of growth in the budget deficit and money supply on real interest rate are integral to contemporary macroeconomic policy. We employ threshold VAR and nonlinear impulse responses using quarterly data from 1959 to 2015. We find that growth in money supply and budget deficits have an asymmetric impact on inflation, short-term interest rate, and real interest rates. Growth in money supply and budget deficit tend to make the real interest rate negative in a bad state. In a good state, on the other hand, growth in money supply tend to increase the real interest rate but growth in budget deficits tend to decrease the real interest rate over the forecast horizon.

Download or read book Essays in Fiscal Policy written by Edmund L. Matecki and published by . This book was released on 2014 with total page 131 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fiscal policy is investigated in two settings. First, a fully identified neoclassical growth model with rich fiscal policy rules is augmented with non-Ricardian consumers and fit to post-war U.S. data using Bayesian techniques. Allowing transfer payments to directly affect the consumption choices of rule-of-thumb agents permits a new interpretation of time series evidence regarding which fiscal instruments have historically financed government debt. The economic impact of fiscal adjustments is studied for two labor supply specifications. The first specification restricts labor supply by equalizing hours worked across household types. The second relaxes this assumption, allowing for intratemporal optimization by non-Ricardian households. With respect to previous findings, capital and labor taxes are more important for debt stabilization while transfers play a smaller role. Capital taxes and transfers play a larger role in output stabilization. Second, I explore the effects of anticipated policy changes. If agents are rational, they will incorporate news about future spending changes before they are enacted. I collected Federal Reserve forecasts for the period 1965 - 2005 from online archives of FOMC meetings. I incorporate the forecasts as a measure of anticipated military spending to identify government spending shocks in a VAR. When the raw forecasts are used I find that GDP, hours, wages, and consumption all rise following a shock to the news variable. When I instead incorporate forecast errors in the VAR I find just the opposite: hours increase while wages and consumption fall after a government spending shock, as is typical with the narrative approach to identifying government spending shocks, pioneered Ramey and Shapiro (1997). Thus, the way in which the forecast data is incorporated into the VAR becomes crucially important to the results. Corroborating evidence is sought using a structural model designed to study fiscal policy.

Download or read book Essays on Monetary and Fiscal Policy Interactions in Small Open Economies written by Thitima Chucherd and published by . This book was released on 2013 with total page 474 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis addresses interactions between monetary and fiscal policies in a theoretical dynamic stochastic general equilibrium (DSGE) model of a small open economy and in an empirical model under a structural vector error correction model (SVECM). The thesis consists of three essays. The contribution is both theoretical and empirical that enables a better understanding of the complexity of interactions between monetary and fiscal policies in small open economies. The first essay examines the equilibrium determinacy under monetary and fiscal rules. The goal is to investigate how monetary and fiscal policy interactions ensure a unique and non-explosive (determinate) equilibrium for a small open economy. The study focuses when policy makers implement a set of policy mixes to address domestic output price inflation control for monetary policy, debt stabilization for fiscal policy, and joint output stabilization tasks. The result indicates that two policy schemes facilitate a determinate equilibrium. First, monetary policy actively controls inflation when fiscal policy sets a sufficient feedback on debt. Second, monetary policy becomes passive against inflation when fiscal policy is insolvent. Adding output stabilization to each rule simply causes variants of this fundamental. An interest rate rule with output stabilization can be more passive against inflation while providing a stronger response to the output gap. Fiscal policy is required to set higher feedback on debt along with its stronger counter-cyclical policy. The second essay links between the equilibrium determinacy and policy optimization. This essay provides insights into the design of policy mixes and compares determinacy outcomes between two theoretical models of a small open economy: with and without an explicit exchange rate role. This study shows that policy interactions in a small open economy with an endogenous exchange rate is quite sophisticated, especially when a monetary rule is added with an output stabilization task and/or targeted to Consumer Price Index (CPI) inflation. Additional concern for monetary policy in an open economy causes a partial offset to its reaction on domestic output price inflation that weakens its effect on the real debt burden. To minimize economic fluctuations, policy makers should mute the role of output stabilization for monetary policy, and set minimum feedback on debt that is compatible with the degree of counter-cyclical fiscal policy. Substantially active response to inflation is satisfactory for monetary policy with CPI inflation targeting. The third essay empirically presents monetary and fiscal policy interactions in Thailand's SVECM suggested by a theoretical DSGE model developed from the previous essays. This essay shows that the DSGE-SVECM model can be supported by Thai data. A shock to monetary policy is effective with a lag. Government spending policy is also effective with a lag and some crowding-out effects on output. An adverse shock in tax policy unexpectedly stimulates the economy, indicating room for enhancing economic growth by relaxing revenue constraint. Monetary policy is mainly implemented to correct a consequence of a fiscal shock on inflation (and also the domestic and foreign shocks), while fiscal policy appears to counter a consequence of the monetary policy shock on output.

Download or read book Essays in Fiscal Federalism written by Richard Abel Musgrave and published by Washington, D.C. : Brookings Institution. This book was released on 1965 with total page 330 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Fiscal Theory and Political Economy written by James M. Buchanan and published by UNC Press Books. This book was released on 2014-06-30 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: This important collection of eight interrelated essays fills a gap in English-language literature in public finance and fiscal theory. The author consistently emphasizes the central role of collective decision making in fiscal theories as well as the methodological setting in which positive proportions in fiscal theory must be developed. Originally published in 1960. A UNC Press Enduring Edition -- UNC Press Enduring Editions use the latest in digital technology to make available again books from our distinguished backlist that were previously out of print. These editions are published unaltered from the original, and are presented in affordable paperback formats, bringing readers both historical and cultural value.

Download or read book Essays on Fiscal Policy Public Debt and Financial Development written by Alfredo Schclarek Curutchet and published by . This book was released on 2006 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Monetary Economics Collected Works of Harry Johnson written by Harry Johnson and published by Routledge. This book was released on 2013-07-18 with total page 341 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reprinting the second edition (which included a new introduction explaining developments which had emerged since first publication) this book discusses explorations in the fundamental theory of a monetary economy, a theoretical critique of the ‘Phillips Curve’ approach to the theory of inflation and the theory of the term structure of interest rates in terms of the theory of forward markets pioneered by David Meiselman.

Download or read book Essays in Fiscal and Monetary Policy written by Michael J. Artis and published by Oxford ; New York : Oxford University Press. This book was released on 1981 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: Compilation of essays on design, measurement and effects of fiscal policy and monetary policy in the UK - using econometric models, analyses short term and long term effects in a closed economy, on an open economy under alternative exchange rates, and the assumptions concerning capital flow. Bibliography pp. 186 to 193, graphs, references and statistical tables.

Download or read book Public Debts written by Henry Carter Adams and published by Ayer Publishing. This book was released on 1898 with total page 407 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 1887, this book treats public borrowing as a financial topic and probes its social and political implications. Included are chapters on advantages and risks of foreign loans, the management of public debts and their impact on industrial development.

Download or read book Essays on Taxation and Fiscal Policy written by Nana Quaicoe and published by . This book was released on 2018 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines issues on taxation, fiscal policy, and governance in developing countries. The three chapters of the dissertation are summarized as follows: In the first chapter, we argue that models of advanced countries are often applied to developing countries with little consideration for differences in economic structures. Deviating from this norm, we examine fiscal policy effects in a simple DSGE model structured after a developing economy with credit constraints. Building a model akin to that of a developing economy largely dominated by an agriculture sector, we allow for agents that are credit constrained and noncredit-constrained. First, we observe and provide new evidence that allowing for household heterogeneity significantly alters how fiscal policy affects consumption, output, and labor in developing countries when compared to standard representative agent models. Second, we find that shocks are more subdued in the two agent model than the representative agent model when simulated with data for developing countries. For the second chapter, we contribute to the literature on tax models and the field of public economics by examining the fiscal policy effects of a small developing country if it adopts a comprehensive progressive tax structure.We analyze this under the context where a large proportion of households are credit constrained. We discover that under a progressive tax structure, the government finances its purchases by increasing taxes for those with access to financial markets while reducing taxes of households that are credit-constrained suggesting evidence of income redistribution. Finally, we find that macroeconomic analyses are considerably different when the tax structure is progressive compared to flat thereby having several policy implications for developing countries. Lastly, in the third chapter, we use annual aggregate data for 58 developing countries covering the period 2000-2015 to investigate whether alternative elements of governance have differing effects on the relationship between total public debt and private investment. First, results suggest that total public debt is considerably lower in countries with good governance while private investment thrives in countries with favorable political regimes. Second, there is evidence of crowding out(total public debt displaces private investment) with the extent of crowding out largely related to governance. Government effectiveness and corruption are the governance in-dicators that appear to have the greatest impact on investment. Corruption is found to be the most important aspect of governance in terms of the relationship between total public debt and private investment: an increase in total public debt has the greatest effect on reducing private investment in countries with low levels of corruption.

Download or read book Essay on Fiscal Policy Public Debt and Growth written by Duc Anh Le and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis aims to contribute to recent studies which carry out the effects of government expenditure, taxation, public debt, and total factor productivity on economic growth, especially in case of Vietnam. Before going to further, this thesis introduces an overview onVietnam's economy context in some recent decades. For instance, economic growth, inflation control, taxation system and its renewal, poverty reduction, and public debt issue. First, this thesis distinguishes public debt by two types, domestic and external debt and delivers a main message that an increase of tax on returns to assets can positively impact the steady-state values of main macroeconomic variables expressed in ratios of physical capital (consumption, public expenditure, domestic debt). Second, among other production factors, only provincial labor force exerts a positive impact on the provincial economic growth while government expenditure has no significant effect on growth for our sample during the 2000-2007 period. Finally, decentralization in government expenditure will promote economic growth if the share of local government expenditure is low enough that determined by the ratio of elasticity of local government expenditure to sum of local government and central government elasticities. Estimation results show that decentralization in government expenditure in case of Vietnam has a positive impact on economic growth, the higher level of decentralization in government expenditure leads to higher economic growth.

Download or read book Essays on Fiscal Policy and the Pricing of Sovereign Debt written by Fraser William Knox and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis consists of three essays which relate to the conduct of fiscal policy and the pricing of sovereign debt. The first chapter examines the credibility of official budgetary projections produced by the fiscal authorities of EU member states, as required under the provisions of the Stability and Growth Pact. Drawing upon existing studies, evidence is presented which demonstrates that these official projections are characterised by optimism bias, i.e. announced budgetary adjustments persistently falls short of those observed in practice. This chapter contributes to the existing literature by identifying a systematic link between the magnitude of this optimism bias and the degree of fragmentation which characterises the government: whereby greater fragmentation of this type coincides with a tendency to submit more optimistic projections. Numerical fiscal rules are then considered as a mechanism for improving the credibility of these projections and it shown that budgetary strictures of this form have been effective in reducing the optimism bias which emerges when government fragmentation increases. The second chapter investigates the relative importance of systematic risk and conventional fiscal indicators in characterising the default risks of EMU member states and as potential explanations of pricing disparities which exist between public debt securities issued by these countries. Using both a portfolio approach and Fama and Macbeth cross-sectional regressions it is demonstrated that measures of systematic default risk (approximated by an issuer's default beta) and fiscal indicators overlap in the manner of risks which they represent. It is also shown that the common variation which exists between these alternate measures is relevant in explaining difference in the excess returns on EMU public debt securities in sample periods which both include and exclude the recent sovereign debt crisis. The third and final chapter uses a panel data model to examine yield spreads on ten-year public debt securities issued by EMU sovereign nations from 2005 to 2012. Existing studies have highlighted that there are (at times) substantial discrepancies between the spreads implied this class of model and the value of spreads observed in practice, particularly since the advent of the sovereign debt crisis in late 2009. Evidence of this nature has been used to substantiate arguments that financial markets have incorrectly priced the relative risks associated with these securities given that their prices cannot be related to an assumed fundamental basis. In this chapter I present an alternative account of evolutions in EMU yield spreads during the crisis which focuses upon the scale of macroeconomic imbalances characterising certain member states and their implications for public debt sustainability. It is shown that once these factors are taken into account up to 83% of the observed variation in yield spreads can be explained over this period. These results re-establish the importance of fundamentals in understanding market based perceptions of sovereign default risk during the crisis.

Download or read book Essays on Government Debt and Tax Policy written by Ding Ding and published by . This book was released on 2008 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: