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

Author

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  • 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.

Suggested Citation

  • Schilling, Chris & Giesecke, James, 2009. "Short term gain, long term pain? Impact of New Zealand's fiscal stimulus : A dynamic general equilibrium analysis," NZIER Working Paper 2009/3, New Zealand Institute of Economic Research.
    • Handle: RePEc:ris:nzierw:2009_003
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    References listed on IDEAS

    as
    1. Antonio Spilimbergo & Steve Symansky & Olivier Blanchard & Carlo Cottarelli, 2009. "Fiscal Policy For The Crisis," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(02), pages 26-32, July.
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    More about this item

    Keywords

    CGE modelling; income taxes; personal; New Zealand; fiscal stimulus;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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