Advanced Search
MyIDEAS: Login

Welfare Effects of Fiscal Policy under Alternative Exchange Rate Regimes : The Role of the Scale Variable of Money Demand

Contents:

Author Info

  • Pitterle, Ingo
  • Steffen, Dirk
Registered author(s):

    Abstract

    This paper investigates the implications of alternative scale variables of money demand for the comparison of a flexible exchange rate regime with a monetary union in a NOEM setup. The welfare evaluation of exchange rate regimes depends on the exchange rate response under the flexible regime. When the scale variable is private consumption, a domestic fiscal expansion yields a depreciation. As the associated expenditure switching and terms-of-trade effects are beneficial to the domestic country, households prefer flexible exchange rates. However, when the scale variable is total absorption, we obtain an appreciation and the welfare results are reversed. --

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://econstor.eu/bitstream/10419/22083/1/284.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by University of Tübingen, School of Business and Economics in its series Tübinger Diskussionsbeiträge with number 284.

    as in new window
    Length:
    Date of creation: 2004
    Date of revision:
    Handle: RePEc:zbw:tuedps:284

    Contact details of provider:
    Postal: Keplerstr. 17, 72074 Tübingen
    Phone: 07071/29-72563
    Fax: 07071/29-5179
    Email:
    Web page: http://www.uni-tuebingen.de/en/faculties/wirtschafts-und-sozialwissenschaftliche-fakultaet/faecher/wirtschaftswissenschaft.html
    More information through EDIRC

    Related research

    Keywords: Fiscal Policy; New Open Economy Macroeconomics; Money Demand Specification; Flexible Exchange Rates; Monetary Union; Pricing-to-Market;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Neubecker, Leslie & Stadler, Manfred, 2003. "In hunt for size: Merger formation in the oil industry," Tübinger Diskussionsbeiträge 258, University of Tübingen, School of Business and Economics.
    2. Niemann, Rainer & Kiesewetter, Dirk, 2002. "Zur steuerlichen Vorteilhaftigkeit von Kapitallebensversicherungen," Tübinger Diskussionsbeiträge 239, University of Tübingen, School of Business and Economics.
    3. Ronald McKinnon & Gunther Schnabl, 2003. "Synchronized Business Cycles in East Asia and Fluctuations in the Yen/Dollar Exchange Rate," Working Papers 022003, Hong Kong Institute for Monetary Research.
    4. Ronald McKinnon & Gunther Schnabl, 2004. "The East Asian Dollar Standard, Fear of Floating, and Original Sin," Review of Development Economics, Wiley Blackwell, vol. 8(3), pages 331-360, 08.
    5. Kiesewetter, Dirk, 2002. "Tax neutrality and business taxation in Russia: A proposal for a consumption-based reform of the Russian income and profit tax," Tübinger Diskussionsbeiträge 242, University of Tübingen, School of Business and Economics.
    6. Kiesewetter, Dirk & Niemann, Rainer, 2001. "Beiträge und Rentenzahlungen in einer entscheidungsneutralen Einkommensteuer
      [Contributions and pension payments in a decision-neutral income tax]
      ," MPRA Paper 27324, University Library of Munich, Germany.
    7. Starbatty, Joachim, 2002. "Die Abschaffung der DM ist noch keine Bereitschaft zur politischen Union," Tübinger Diskussionsbeiträge 246, University of Tübingen, School of Business and Economics.
    8. Manfred Stadler & Rüdiger Wapler, 2004. "Endogenous Skilled-biased Technological Change and Matching Unemployment," Journal of Economics, Springer, vol. 81(1), pages 1-24, 01.
    9. Baur, Dirk, 2002. "The persistence and asymmetry of time-varying correlations," Tübinger Diskussionsbeiträge 232, University of Tübingen, School of Business and Economics.
    10. Güth, Werner & Stadler, Manfred, 2004. "Path Dependence Without Denying Deliberation : An Exercise Model Connecting Rationality and Evolution," Tübinger Diskussionsbeiträge 282, University of Tübingen, School of Business and Economics.
    11. Neus, Werner, 2002. "Fusionsanreize, strategische Managerentlohnung und die Frage des geeigneten Unternehmensziels," Tübinger Diskussionsbeiträge 244, University of Tübingen, School of Business and Economics.
    12. Licht, Georg & Stadler, Manfred, 2003. "Auswirkungen öffentlicher Forschungsförderung auf die private F&E-Tätigkeit: Eine mikroökonomische Evaluation," Tübinger Diskussionsbeiträge 256, University of Tübingen, School of Business and Economics.
    13. Brassat, Marcel & Kiesewetter, Dirk, 2003. "Steuervorteile durch Versorgungszusagen in Arbeitsverträgen
      [Tax benefits from employer-sponsored pension plans]
      ," MPRA Paper 27262, University Library of Munich, Germany.
    14. J.Baten & J.Wallusch, 2005. "Market Integration and Disintegration of Poland and Germany in the 18th Century," Economies et Sociétés (Serie 'Histoire Economique Quantitative'), Association Française de Cliométrie (AFC), issue 33, pages 1233-1264, July.
    15. Knirsch, Deborah, 2002. "Neutrality-based effective tax rates," Tübinger Diskussionsbeiträge 249, University of Tübingen, School of Business and Economics.
    16. Bayer, Stefan, 2003. "Possibilities and limitations of economically valuating ecological damages," Tübinger Diskussionsbeiträge 254, University of Tübingen, School of Business and Economics.
    17. Stadler, Manfred, 2002. "Leistungsorientierte Besoldung von Hochschullehrern auf der Grundlage objektiv messbarer Kriterien," Tübinger Diskussionsbeiträge 237, University of Tübingen, School of Business and Economics.
    18. Ronald McKinnon & Gunther Schnabl, 2003. "China: A Stabilizing or Deflationary Influence in East Asia? The Problem of Conflicted Virtue," Working Papers 03007, Stanford University, Department of Economics.
    19. Gunther Schnabl, 2004. "Weak Economy and Strong Currency - The Origins of the Strong Yen in the 1990s," International Finance 0404017, EconWPA.
    20. Wapler, Rüdiger, 2001. "Unions, growth and unemployment," Tübinger Diskussionsbeiträge 206, University of Tübingen, School of Business and Economics.
    21. Preuße, Heinz Gert, 2001. "How do Latin Americans think about the economic reforms of the 1990s?," Tübinger Diskussionsbeiträge 221, University of Tübingen, School of Business and Economics.
    22. Jung, Robert & Tremayne, Andrew R., 2001. "Testing serial dependence in time series models of counts against some INARMA alternatives," Tübinger Diskussionsbeiträge 204, University of Tübingen, School of Business and Economics.
    23. Kukuk, Martin & Stadler, Manfred, 2002. "Rivalry and innovation races," Tübinger Diskussionsbeiträge 236, University of Tübingen, School of Business and Economics.
    24. Gampfer, Ralf, 2002. "Fallende Preise in sequentiellen Auktionen: Das Beispiel des Gebrauchtwagenhandels," Tübinger Diskussionsbeiträge 231, University of Tübingen, School of Business and Economics.
    25. Gunther Schnabl, 2004. "De jure versus de facto Exchange Rate Stabilization in Central and Eastern Europe," International Finance 0404013, EconWPA.
    26. Stadler, Manfred, 2004. "Bildung, Innovationsdynamik und Produktivitätswachstum," Tübinger Diskussionsbeiträge 280, University of Tübingen, School of Business and Economics.
    27. Baur, Dirk & Schulze, Niels, 2005. "Coexceedances in financial markets--a quantile regression analysis of contagion," Emerging Markets Review, Elsevier, vol. 6(1), pages 21-43, April.
    28. Neubecker, Leslie, 2001. "Aktienkursorientierte Management-Entlohnung: Ein Wettbewerbshemmnis im Boom?," Tübinger Diskussionsbeiträge 225, University of Tübingen, School of Business and Economics.
    29. Neubecker, Leslie, 2002. "The strategic effect of debt in dynamic price competition with fluctuating demand," Tübinger Diskussionsbeiträge 250, University of Tübingen, School of Business and Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    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:zbw:tuedps:284. 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: (ZBW - German National Library of Economics).

    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.