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Fiscal Policy Dynamics with a Public-Debt Guideline

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Author Info
Hercowitz, Z.
Strawczynski, M.

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Abstract

This paper analyzes the implications of a cost of deviating upwards from a public-debt/output guideline, as the 0.6 ratio in the Maastricht Treaty, in the context of a fiscal policymaking model. Given a pre-announced timetable for enforcement, the dynamic paths of the tax rate and government spending, which depart from smoothing over time, and the public debt are characterized.

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Publisher Info
Paper provided by Tel Aviv in its series Papers with number 2001-1.

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Length: 21 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:teavfo:2001-1

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Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
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Web page: http://econ.tau.ac.il/research/foerder.asp
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Related research
Keywords: PUBLIC DEBT TAXATION POLICY MAKING

Find related papers by JEL classification:
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management

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This page was last updated on 2008-9-21.

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