Download or read book Three Essays on Fiscal Policy and Government Production written by Zipeng Zhou and published by . This book was released on 2014 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research investigates government production function, explores its dynamic properties and studies the effects of fiscal policy implemented through government production channels. The first chapter estimates the production function of the U.S. government. The results indicate that we should be cautious when using a Cobb-Douglas function to represent the government production whenever intermediate goods are included. The analysis also shows the CES function has more superior properties to represent the U.S. government production function based on two new measures derived from exact index theory. The second chapter explores the cyclical movement of government spending components as a result of endogenous responses to exogenous private sector and government sector productivity shocks. This chapter also quantifies the relative contributions of exogenous shocks to the volatility of government spending components. The third chapter argues that fiscal policies that can allocate government inputs and determine the categories of government outputs are able to span the whole range to theoretical results on the responses of private consumption, private output, real wage, and private labor to a government spending shock.

Download or read book Three Essays in Fiscal Policy written by Axelle Ferriere and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Fiscal Policy and Macroeconomic Fluctuations written by Matthew Avery Schurin and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Role of Fiscal Stress for the Size of the Government Spending Multiplier written by Felix Strobel and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Fiscal Policy and Redistribution written by Enlinson Carvalho de Mattos and published by . This book was released on 2006 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt: The second essay integrates the existence of poverty as a negative externality and tax on poor individuals and that the possibility of tax evasion plays a role to determine the size and the sign of the optimal marginal income tax.

Download or read book Three Essays on Fiscal Policy and Macroeconomic Fluctuations written by Matthew Avery Schurin and published by . This book was released on 2013 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Fiscal Policy written by Sinem Buber Singh and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Political Economy of Fiscal Policy written by Sheraz Rajput and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Fiscal Policy and Business Cycle Analysis written by Christian Breuer and published by . This book was released on 2013 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Fiscal Policy Public Infrastructure and Public R D and Heterogeneous Labor written by Parichat Klingthong and published by . This book was released on 2017 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation includes three essays on the dynamic effects of fiscal policy, public infrastructure, and public R&D and heterogeneous labor. In the first essay, we develop and estimate a DSGE model in which congested public infrastructure and public R&D are the crucial elements of a neoclassical production function in order to investigate the dynamic effects of increasing in government investment in R&D and government investment in infrastructure. For the second essay, we estimate a small scale DSGE model for the Thai economy. The endogenous growth model is developed to incorporate congestion due to production inputs and the population density. The estimates suggest that all factors have congested public infrastructure, and that density may be the dominant influence. The third essay analyzes the effects of public R&D on differentiated labor for the US economy compared to the Thailand economy, including male skilled labor, female skilled labor, male unskilled labor, and female unskilled labor. Two sectors of R&D and final goods productions are analyzed in which the final goods firms produce homogenous final output to the economy, and intermediate goods firms invest in R&D knowledge and utilize public R&D to produce blueprints and then produce variety of capital. We find that for the R&D sector, the elasticities of substitution between the two inputs of the two nested levels for the Thai economy and for the United States are the same in terms of complementarity and substituion. For the final goods sector, all the inputs are substitutes for the Thai economy but the for the United States, unskilled female and variety capital are complements.

Download or read book Essays on Optimal Fiscal Policy in a Small Open Economy microform written by Constantine Angyridis and published by Library and Archives Canada = Bibliothèque et Archives Canada. This book was released on 2005 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the final essay, I utilize the model developed in the previous one, in order to further investigate the effect of lending and borrowing constraints on the government's implemented fiscal policy. It is demonstrated that the transition from a balanced-budget policy regime to one in which the government is allowed to borrow and lend in order to smooth taxes across time generates significant welfare gains. However, these gains diminish as the persistence of the stochastic process for government expenditures increases. Under a particular assumption regarding the determination of asset prices in the model, it is shown that compared to the two previous policy regimes, overall welfare can be improved upon further if the government is allowed to issue state-contingent debt. This thesis consists of three essays on the conduct of optimal fiscal policy in the context of a stochastic small open economy. In all cases, the model employed to conduct the analysis is characterized by an asymmetry between the government and the representative household with respect to their accessibility to financial markets. In particular, the government is allowed to borrow and lend at a risk-free interest rate, while the household is assumed to have access to complete financial markets. The first essay discusses the restrictions that need to be placed in the presence of shocks to technology on the specification of the production and utility functions, in order for the optimal tax rate on capital income to be zero in all periods (except the initial one). The second essay considers an environment similar to that in Aiyagari et al. (2002) for a closed economy, with no capital and stochastic government expenditures. Using the same parameterization as these authors, it is shown that assuming away market completeness with respect to the public sector of the economy only, is sufficient to yield equilibrium outcomes that are consistent with Barro's (1979) "tax smoothing" result.

Download or read book Essays on Monetary and Fiscal Policy written by Choongryul Yang and published by . This book was released on 2020 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation investigates the transmission of monetary and fiscal policy using both empirical and theoretical frameworks. Chapter 1 examines how the number of products sold by a firm affect its decisions regarding price setting and information acquisition. Using a firm-level survey from New Zealand, I show that firms that produce more goods have both better information about aggregate inflation and more frequent but smaller price changes. To characterize the implications of these empirical findings for the ability of monetary policy to stimulate the economy, I develop a new dynamic general equilibrium model with rationally inattentive multi-product firms that pay a menu cost to reset their prices. I show that the interaction of the menu cost and rational inattention frictions leads firms to adopt a wait-and-see policy and gives rise to a new selection effect: firms have time-varying inaction bands widened by their subjective uncertainty about the economy such that price adjusters choose to be better informed than non-adjusters. This selection effect endogenously generates a distribution of desired price changes with a majority near zero and some very far from zero, which acts as a strong force to amplify monetary non-neutrality. I calibrate the model to be consistent with the micro-evidence on both prices and inattention and find two main quantitative results. First, the new selection effect, coupled with imperfect information of price setters, leads to real effects of monetary policy shocks in the one-good version of the model that are nearly as large as those in the Calvo model. Second, in the two-good version of the model, as firms optimally choose to have better information about monetary shocks, the real effects of monetary policy shocks decline by 20%. In Chapter 2, joint with Hassan Afrouzi, we develop a general equilibrium flexible price model with dynamic rational inattention in which the slope of the Phillips curve is endogenous to systematic aspects of monetary policy. This Phillips curve is flatter when the monetary policy is more hawkish: rationally inattentive firms find it optimal to ignore monetary policy shocks when the monetary authority commits to stabilize nominal variables. Moreover, an unexpectedly more dovish monetary policy leads to a completely flat Phillips curve in the short-run and a steeper Phillips curve in the long-run. We also develop a tractable method for solving general dynamic rational inattention models in linear quadratic Gaussian setups. Chapter 3 asks whether the effectiveness of fiscal stimulus policy depends on the degree of economic income inequality. Many previous works about state-dependence of fiscal multiplier have focused on the degree of slack in the economy. In a surge of concerns about rising inequality of the U.S., I use rich historical state-level data on military procurement and inequality to find the relationship between the degree of income inequality and the local government spending multipliers. I show that the effects of government spending shocks on output are larger in low-inequality states than in high-inequality states. In contrast, I find no evidence that employment multipliers differ by the extent of income inequality. These results are robust to various specifications and other sources of inequality data. I also estimate aggregate output multipliers using historical military spending and income inequality data. I find the evidence that aggregate output multipliers are high when the income inequality is low. Thus, both local and aggregate multipliers are significantly affected by the degree of income inequality of an economy. I consider a variety of potential theoretical explanations for the results, including heterogeneous within-sector inequality and distributional effects of government spending shock, but find that none can adequately explain this finding

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 The Theory of Money and Financial Institutions written by Martin Shubik and published by MIT Press. This book was released on 1999 with total page 472 pages. Available in PDF, EPUB and Kindle. Book excerpt: This first volume in a three-volume exposition of Shubik's vision of "mathematical institutional economics" explores a one-period approach to economic exchange with money, debt, and bankruptcy. This is the first volume in a three-volume exposition of Martin Shubik's vision of "mathematical institutional economics"--a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics. The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using as a prime tool the theory of games in strategic and extensive form. The approach involves a search for minimal financial institutions that appear as a logical, technological, and institutional necessity, as part of the "rules of the game." Money and financial institutions are assumed to be the basic elements of the network that transmits the sociopolitical imperatives to the economy. Volume 1 deals with a one-period approach to economic exchange with money, debt, and bankruptcy. Volume 2 explores the new economic features that arise when we consider multi-period finite and infinite horizon economies. Volume 3 will consider the specific role of financial institutions and government, and formulate the economic financial control problem linking micro- and macroeconomics.

Download or read book Three Essays on Macroeconomics written by Lider Baran Doda and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays in Monetary and Macroprudential Policies written by Benedikt Mario Kolb and published by . This book was released on 2017 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis focuses on recent monetary and macroprudential policies addressing the Financial Crisis. Chapter 1 stresses the role of central-bank communication. In particular, shocks derived from movements in federal funds futures prices during monetary policy announcement days have become popular for analysing U.S. monetary policy. While the literature often considers only surprise changes in the policy rate ("action shocks"), we distinguish between action and "communication shocks" (surprise announcements about future rates), using a novel decomposition of futures price movements. Our results indicate that communication shocks are the main driver of U.S. monetary policy shocks and that they explain a substantial share of variation in production. Chapter 2 turns to a macroprudential topic: How will a tightening in aggregate bank capital requirements affect the real economy? In this paper, we investigate this using a narrative index of regulatory US bank capital requirement changes for the period 1980M1 to 2016M8. Our results robustly suggest that a tightening in capital requirements leads to a temporary drop in lending and economic activity. The aggregate capital ratio and the level of bank capital increase permanently. Our results suggest that permanently higher capital requirements have no lasting negative effect on the real economy. Finally, Chapter 3 looks at asset purchases by the ECB. Their declared goal is to revive inflation, but purchases of which asset will be best suited for this? I address this question in a DSGE model with a role for three different asset classes: Government bonds, securitised financial assets and corporate sector bonds, which affect the economy via different channels. I investigate the impact of asset purchases in an environment of low inflation and a policy rate at the zero lower bound. Purchases of government bonds appear most effective in countering disinflationary episodes, while those of securitised assets have less impact.

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.