IDEAS home Printed from https://ideas.repec.org/p/wop/briedp/120.html
   My bibliography  Save this paper

The Impact on the Asia-Pacific Region of Fiscal Policy of the United States and Japan

Author

Listed:
  • W. J. McKibbin
  • T. J. Bok

Abstract

This paper explores the macroeconomic consequences of changes in fiscal policy in the United States and Japan, for countries in the Asia-Pacific region. The basis of the study is the McKibbin-Sachs Global model that now includes models for Korea, Australia and Japan. It is shown that the response of global financial markets is important in determining the short run impact and the dynamics of adjustment of countries in the Asia-Pacific region when macroeconomic policies change in Japan and the United States. It is also shown that whether a policy is anticipated or not has important consequences for the adjustment process. Indeed in the short run GDP may rise or fall in response to a change in fiscal policy depending on the announcement effect of the policy change.

Suggested Citation

  • W. J. McKibbin & T. J. Bok, "undated". "The Impact on the Asia-Pacific Region of Fiscal Policy of the United States and Japan," Discussion Papers 120, Brookings Institution International Economics.
    • Handle: RePEc:wop:briedp:120
    as

    Download full text from publisher

    File URL: http://www.msgpl.com.au/download/BDP121.PDF
    File Function: text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Nordhaus, William D, 1991. "To Slow or Not to Slow: The Economics of the Greenhouse Effect," Economic Journal, Royal Economic Society, vol. 101(407), pages 920-937, July.
    2. Jorgenson, Dale W, 1988. "Productivity and Postwar U.S. Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 2(4), pages 23-41, Fall.
    3. Thomas Rutherford, 1992. "The Welfare Effects of Fossil Carbon Restrictions: Results from a Recursively Dynamic Trade Model," OECD Economics Department Working Papers 112, OECD Publishing.
    4. Hoel, Michael, 1991. "Global environmental problems: The effects of unilateral actions taken by one country," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 55-70, January.
    5. Jorgenson, Dale W. & Wilcoxen, Peter J., 1992. "Global change, energy prices, and US economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 3(1), pages 135-154, June.
    6. Young, Alwyn, 1994. "Lessons from the East Asian NICS: A contrarian view," European Economic Review, Elsevier, vol. 38(3-4), pages 964-973, April.
    7. Dale W. Jorgenson & Daniel T. Slesnick & Peter J. Wilcoxen, 1992. "Carbon Taxes and Economic Welfare," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992 Micr), pages 393-454.
    8. Felder Stefan & Rutherford Thomas F., 1993. "Unilateral CO2 Reductions and Carbon Leakage: The Consequences of International Trade in Oil and Basic Materials," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 162-176, September.
    9. William R. Cline, 1992. "Economics of Global Warming, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 39, April.
    10. Rudiger Dornbusch & James M. Poterba (ed.), 1991. "Global Warming: Economic Policy Responses," MIT Press Books, The MIT Press, edition 1, volume 1, number 026204126x, April.
    11. W. J. McKibbin & P. J. Wilcoxen, "undated". "Environmental Policy and International Trade," Discussion Papers 117, Brookings Institution International Economics.
    12. Campbell, John Y & Mankiw, N Gregory, 1990. "Permanent Income, Current Income, and Consumption," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 265-279, July.
    13. Nordhaus, William, 1982. "How Fast Should We Graze the Global Commons?," American Economic Review, American Economic Association, vol. 72(2), pages 242-246, May.
    14. B. Bosworth & S. M. Collins & Y. Chen, "undated". "Accounting for Difference in Economic Growth," Discussion Papers 115, Brookings Institution International Economics.
    15. Peter Hoeller & Jonathan Coppel, 1992. "Energy Taxation and Price Distortions in Fossil Fuel Markets: Some Implications for Climate Change Policy," OECD Economics Department Working Papers 110, OECD Publishing.
    16. repec:bla:scandj:v:95:y:1993:i:3:p:257-78 is not listed on IDEAS
    17. Schelling, Thomas C, 1992. "Some Economics of Global Warming," American Economic Review, American Economic Association, vol. 82(1), pages 1-14, March.
    18. James M. Poterba, 1991. "Tax Policy to Combat Global Warming: On Designing a Carbon Tax," NBER Working Papers 3649, National Bureau of Economic Research, Inc.
    19. Gordon, Robert J, 1995. "Is There a Trade-off between Unemployment and Productivity Growth?," CEPR Discussion Papers 1159, C.E.P.R. Discussion Papers.
    20. Stephen C Peck & Thomas J. Teisberg, 1992. "CETA: A Model for Carbon Emissions Trajectory Assessment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 55-78.
    21. Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 649-698, June.
    22. D. W. Barns & J. A. Edmonds & J. M. Reilly, 1992. "Use of the Edmonds-Reilly Model to Model Energy-Related Greenhouse Gas Emissions," OECD Economics Department Working Papers 113, OECD Publishing.
    23. Jean-Marc Burniaux & John P. Martin & Giuseppe Nicoletti & Joaquim Oliveira Martins, 1991. "GREEN - - A Multi-Region Dynamic General Equilibrium Model for Quantifying the Costs of Curbing CO2 Emissions: A Technical Manual," OECD Economics Department Working Papers 104, OECD Publishing.
    24. John Whalley & Randall Wigle, 1991. "Cutting CO2 Emissions: The Effects of Alternative Policy Approaches," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 109-124.
    25. Edmonds Jae & Reilly John, 1983. "Global Energy and C02 to the Year 2050," The Energy Journal, , vol. 4(3), pages 21-48, July.
    26. Dowrick, Steve & Nguyen, Duc-Tho, 1989. "OECD Comparative Economic Growth 1950-85: Catch-Up and Convergence," American Economic Review, American Economic Association, vol. 79(5), pages 1010-1030, December.
    27. William W. Hogan & Dale W. Jorgenson, 1991. "Productivity Trends and the Cost of Reducing CO2 Emissions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 67-86.
    28. Mckibbin, W.J. & Wilcoxen, P.J., 1992. "The Global Costs of Policies to Reduce Greenhouse Gas Emissions," Papers 97, Brookings Institution - Working Papers.
    29. Uzawa, H, 1969. "Time Preference and the Penrose Effect in a Two-Class Model of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 77(4), pages 628-652, Part II, .
    30. Jorgenson, Dale W. & Wilcoxen, Peter J., 1990. "Intertemporal general equilibrium modeling of U.S. environmental regulation," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 715-744.
    31. Diewert, W E, 1992. "The Measurement of Productivity," Bulletin of Economic Research, Wiley Blackwell, vol. 44(3), pages 163-198, July.
    32. Dale W. Jorgenson & Masahiro Kuroda, 1991. "Productivity and International Competitiveness in Japan and the United States, 1960-1985," NBER Chapters, in: Productivity Growth in Japan and the United States, pages 29-57, National Bureau of Economic Research, Inc.
    33. William D. Nordhaus, 1992. "The 'DICE' Model: Background and Structure of a Dynamic Integrated Climate-Economy Model of the Economics of Global Warming," Cowles Foundation Discussion Papers 1009, Cowles Foundation for Research in Economics, Yale University.
    34. Goulder Lawrence H., 1995. "Effects of Carbon Taxes in an Economy with Prior Tax Distortions: An Intertemporal General Equilibrium Analysis," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 271-297, November.
    35. Hayashi, Fumio, 1982. "The Permanent Income Hypothesis: Estimation and Testing by Instrumental Variables," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 895-916, October.
    36. J. P. Neary (ed.), 1995. "International Trade," Books, Edward Elgar Publishing, volume 0, number 575.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Warwick. J. McKibbin, "undated". "Quantifying APEC Trade Liberalization: A Dynamic Analysis," Discussion Papers 122, Brookings Institution International Economics.
    2. McKibbin, Warwick J. & Wilcoxen, Peter J., 2013. "A Global Approach to Energy and the Environment," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 995-1068, Elsevier.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaeger, William K., 1995. "The welfare cost of a global carbon tax when tax revenues are recycled," Resource and Energy Economics, Elsevier, vol. 17(1), pages 47-67, May.
    2. Warwick J. McKibbin & Robert Shackleton & Peter J. Wilcoxen, 1998. "The Potential Effects of International Carbon Emissions Permit Trading Under the Kyoto Protocol," Economics and Environment Network Working Papers 9805, Australian National University, Economics and Environment Network.
    3. Warwick J. McKibbin & Peter J. Wilcoxen, 1999. "Permit Trading Under the Kyoto Protocol and Beyond," Economics and Environment Network Working Papers 9902, Australian National University, Economics and Environment Network.
    4. Warwick J. McKibbin & Martin T. Ross & Robert Shackleton & Peter J. Wilcoxen, 1999. "Emissions Trading, Capital Flows and the Kyoto Protocol," The Energy Journal, , vol. 20(1_suppl), pages 287-333, June.
    5. Warwick J McKibbin & Robert Shackleton & Peter J Wilcoxen, 1998. "The Potential Effects of International Carbon Emissions Permit Trading," Departmental Working Papers 1998-09, The Australian National University, Arndt-Corden Department of Economics.
    6. Fankhauser, Samuel & Kverndokk, Snorre, 1996. "The global warming game -- Simulations of a CO2-reduction agreement," Resource and Energy Economics, Elsevier, vol. 18(1), pages 83-102, March.
    7. Bhattacharyya, Subhes C., 1996. "Applied general equilibrium models for energy studies: a survey," Energy Economics, Elsevier, vol. 18(3), pages 145-164, July.
    8. Paul Ekins, 1995. "Rethinking the costs related to global warming: A survey of the issues," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 231-277, October.
    9. Hammitt, James K. & Adams, John L., 1996. "The value of international cooperation for abating global climate change," Resource and Energy Economics, Elsevier, vol. 18(3), pages 219-241, October.
    10. Williams, Michael, 1995. "Global warming and carbon taxation: Optimal policy and the role of administration costs," Energy Economics, Elsevier, vol. 17(4), pages 319-327, October.
    11. Warwick J. McKibbin & David Pearce & Alison Stagman, 2004. "Long Run Projections for Climate Change Scenarios," Economics and Environment Network Working Papers 0405, Australian National University, Economics and Environment Network.
    12. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
    13. Spash, Clive L. & Hanley, Nick, 1994. "Cost-benefit analysis and the greenhouse effect," MPRA Paper 38666, University Library of Munich, Germany.
    14. McKibbin, Warwick J. & Shackleton, Robert & Wilcoxen, Peter J., 1999. "What to expect from an international system of tradable permits for carbon emissions," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 319-346, August.
    15. Kohn, Robert E., 2001. "Unilateral transfer of abatement capital," Resource and Energy Economics, Elsevier, vol. 23(2), pages 85-95, April.
    16. Conrad, Klaus, 2001. "Computable General equilibrium Models in Environmental and Resource Economics," Discussion Papers 601, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    17. Carolyn Fischer & Richard D. Morgenstern, 2006. "Carbon Abatement Costs: Why the Wide Range of Estimates?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 73-86.
    18. Lawrence H. Goulder, 1992. "Do the Costs of a Carbon Tax Vanish When Interactions With Other Taxes are Accounted For?," NBER Working Papers 4061, National Bureau of Economic Research, Inc.
    19. A. Lans Bovenberg & Lawrence H. Goulder, 2001. "Neutralizing the Adverse Industry Impacts of CO2 Abatement Policies: What Does It Cost?," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 45-90, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wop:briedp:120. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Krichel (email available below). General contact details of provider: https://edirc.repec.org/data/brookus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.