Alternative Specifications of Intertemporal Fiscal Policy in a Small Theoretical Model
AbstractIn this working papers, we use a simple neoclassical growth model to illustrate how consumption, investment, and output -- more broadly, the entire dynamic equation system of a model -- can be strongly influenced by alternative specifications of a reaction function describing the intertemporal behavior of a government's fiscal authority. The classes of fiscal rule studied -- debt-stock targeting, incremental interest payments (IIP), and the analytical benchmark of a balanced budget -- are described and discussed in the first paper in the series. The analysis demonstrates that the consequences of shocks or policy actions can be strongly conditioned by the intertemporal fiscal reaction function imposed on a macroeconomic model. Significant variation can occur for different types of rule, for alternative assumptions about the timing of the rule's activation, and for alternative values of the rule's feedback coefficients.
Download InfoTo 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 InfoPaper provided by Brookings Institution - Working Papers in its series Papers with number 124.
Length: 27 pages
Date of creation: 1996
Date of revision:
Other versions of this item:
- Ralph C. Bryant & Long Zhang, 1996. "Alternative Specifications of Intertemporal Fiscal Policy in a Small Theoretical Model," Discussion Papers 124, Brookings Institution International Economics.
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Leal, Teresa & Pérez, Javier J. & Tujula, Mika & Vidal, Jean-Pierre, 2007.
"Fiscal forecasting: lessons from the literature and challenges,"
Working Paper Series
0843, European Central Bank.
- Teresa Leal & Javier J. Pérez & Mika Tujula & Jean-Pierre Vidal, 2008. "Fiscal Forecasting: Lessons from the Literature and Challenges," Fiscal Studies, Institute for Fiscal Studies, vol. 29(3), pages 347-386, 09.
- Javier J. Pérez & Paul Hiebert, 2002.
"Identifying endogenous fiscal policy rules for macroeconomic models,"
Economic Working Papers at Centro de Estudios Andaluces
E2002/06, Centro de Estudios Andaluces.
- Perez, Javier J. & Hiebert, Paul, 2004. "Identifying endogenous fiscal policy rules for macroeconomic models," Journal of Policy Modeling, Elsevier, vol. 26(8-9), pages 1073-1089, December.
- Pérez, Javier J. & Hiebert, Paul, 2002. "Identifying endogenous fiscal policy rules for macroeconomic models," Working Paper Series 0156, European Central Bank.
- Eric M. Leeper, 2010. "Monetary Science, Fiscal Alchemy," NBER Working Papers 16510, National Bureau of Economic Research, Inc.
- Moldovan, Ioana R., 2010.
"Countercyclical taxes in a monopolistically competitive environment,"
European Economic Review,
Elsevier, vol. 54(5), pages 692-717, July.
- Ioana Moldovan, 2007. "Countercyclical Taxes in a Monopolistically Competitive Environment," Working Papers 2007_42, Business School - Economics, University of Glasgow.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.