Advanced Search
MyIDEAS: Login to save this article or follow this journal

Distortionary Taxation, Debt, and the Transmission of Fiscal Policy Shocks

Contents:

Author Info

  • Ludger Linnemann
Registered author(s):

    Abstract

    Does the potential of fiscal policy to influence the business cycle rest on deficit spending? The paper discusses the question in a dynamic general-equilibrium business-cycle model with staggered price adjustment, distortionary taxation, government debt, and monopolistic wage setting. The model's predictions with respect to the impact of government spending shocks on the economy are in line with empirical evidence due to the endogeneity of the income tax rate. Although Ricardian equivalence does not hold, the size of the budget deficit has limited quantitative importance for the short-run effectiveness of fiscal stabilization policy.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

    Volume (Year): 61 (2005)
    Issue (Month): 3 (November)
    Pages: 368-

    as in new window
    Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200511)61:3_368:dtdatt_2.0.tx_2-a

    Contact details of provider:
    Web page: http://www.mohr.de/fa

    Order Information:
    Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
    Email:

    Related research

    Keywords: fiscal policy; distortionary taxation; government dept; consumption; sticky prices; monopolistic wage setting;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Wolff, Guntram B. & Tenhofen, Jörn & Heppke-Falk, Kirsten H., 2006. "The macroeconomic effects of exogenous fiscal policy shocks in Germany: a disaggregated SVAR analysis," Discussion Paper Series 1: Economic Studies 2006,41, Deutsche Bundesbank, Research Centre.
    2. Michael W. M. Roos, 2009. "Die deutsche Fiskalpolitik während der Wirtschaftskrise 2008/2009," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(4), pages 389-412, November.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:mhr:finarc:urn:sici:0015-2218(200511)61:3_368:dtdatt_2.0.tx_2-a. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.