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Short term gain, long term pain? Impact of New Zealand's fiscal stimulus : A dynamic general equilibrium analysis

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Author Info

  • Schilling, Chris

    (New Zealand Institute of Economic Research)

  • Giesecke, James

    (Centre of Policy Studies and Impact Project (COPS), Faculty of Business and Economics, Monash University)

Abstract

In this report we use our new dynamic computable general equilibrium model to analyse the impact of the personal tax cuts, cuts to small business taxes, and infrastructure spending that have been announced since late last year. We have assumed in this paper that the Government will need to raise taxes after the economy recovers to deal with the projected budget deficits and worsening net Crown debt.

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Bibliographic Info

Paper provided by New Zealand Institute of Economic Research in its series NZIER Working Paper with number 2009/3.

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Length: 20 pages
Date of creation: 13 May 2009
Date of revision:
Handle: RePEc:ris:nzierw:2009_003

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Web page: http://www.nzier.org.nz/
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Related research

Keywords: CGE modelling; income taxes; personal; New Zealand; fiscal stimulus;

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