Microfoundations of fiscal policy effectiveness: monopolistic competition and fiscal policy multipliers

2006 ◽  
Vol 1 (3) ◽  
pp. 266
Author(s):  
Maria A. Caraballo ◽  
Carlos Usabiaga
Keyword(s):  
Fiscal Policy ◽  
Monopolistic Competition ◽  
Policy Effectiveness ◽  
Policy Multipliers

scholarly journals Local and aggregate fiscal policy multipliers

2017 ◽  
Vol 92 ◽  
pp. 16-30 ◽  
Author(s):  
Bill Dupor ◽  
Rodrigo Guerrero
Keyword(s):  
Fiscal Policy ◽  
Policy Multipliers

Fiscal Policy Multipliers on Subnational Government Spending

2012 ◽  
Vol 4 (2) ◽  
pp. 46-68 ◽  
Author(s):  
Jeffrey Clemens ◽  
Stephen Miran
Keyword(s):  
Fiscal Policy ◽  
State Government ◽  
Government Spending ◽  
Stabilization Policy ◽  
Natural Experiments ◽  
Current Consumption ◽  
Sources Of Variation ◽  
Fiscal Stabilization ◽  
Alternative Sources ◽  
Policy Multipliers

Balanced budget requirements lead to substantial pro-cyclicality in state government spending, with the stringency of a state's rules driving the pace at which it must adjust to shocks. We show that fiscal institutions can generate natural experiments in deficit-financed spending that are informative regarding fiscal stabilization policy. Alternative sources of variation in subnational fiscal policy often implicitly involve “windfall” financing, which precludes any effect of future debt or taxation on current consumption and investment. Consistent with a role for these “Ricardian” effects, our estimates are smaller than those in related studies, implying an on-impact multiplier below 1. (JEL C51, E32, E62, H72)

Fiscal Policy Effectiveness in Japan

2002 ◽  
Vol 16 (4) ◽  
pp. 536-558 ◽  
Author(s):  
Kenneth N. Kuttner ◽  
Adam S. Posen
Keyword(s):  
Fiscal Policy ◽  
Policy Effectiveness

Russian budget constraints will force hard choices

2016 ◽  
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Political Elite ◽  
The Political ◽  
Budget Management ◽  
Policy Effectiveness ◽  
Content Type ◽  
Monetary Policy Effectiveness ◽  
Will Force ◽  
Regional Budgets

Subject Policy differences reflected in Russian budget debate Significance Budget management has grown into an acute problem for Russian policymakers. The immediate difficulty is how to finance this year's deficit with as little inflationary impact as possible. The problem over the next three years will be to win elite support for a tough fiscal stance. Officials have proposed tighter budgets in 2017-19 in nominal as well as real terms. Impacts The CBR will continue to complain that uncertainty on fiscal policy restricts its monetary policy effectiveness. Privatisations to plug budget gaps will be controversial among the political elite. Cuts in federal transfers to regional budgets will be contentious.

The Fed’s Role, Other Domestic Policies, and Conditions Abroad

2013 ◽  
Author(s):  
Stephen H. Axilrod
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Policy Effectiveness ◽  
Domestic Policies

What policies outside the Fed’s control most influence its policy effectiveness? With regard to policies that are, like the Fed’s monetary policy, aimed at influencing the economy as a whole, the federal government’s fiscal policy would be at the top of the list. Fiscal...

Tunisian Fiscal Policy Effects in a New Keynesian Model With Price Rigidity and Monopolistic Competition

2021 ◽  
Vol 10 (1) ◽  
pp. 13-31
Author(s):  
Slah Slimani
Keyword(s):  
Fiscal Policy ◽  
Interest Rate ◽  
Private Consumption ◽  
Monopolistic Competition ◽  
Aggregate Demand ◽  
Public Spending ◽  
New Keynesian ◽  
Keynesian Model ◽  
The Business Cycle ◽  
The Interest Rate

This paper applies a multivariate neo-Keynesian DSGE model to study the effects of changes in Tunisian public spending on the business cycle, private consumption, wages, interest rate, and inflation rate in the presence of monopolistic competition and price nominal short-term rigidity. The main finding of this paper shows a Tunisian pro-cyclical fiscal policy. Expansionary public spending has two initial effects. The output increases due to the usual increase in labor supply, and aggregate demand increases due to an incomplete crowding out of private consumption. By increasing aggregate demand, the central bank increases the nominal interest rate, which moves in concert with inflation in order to counteract inflationary pressures. Households reduce their consumer spending at the same time as the real interest rate increases. Some companies are responding to the change in the interest rate by reducing their expenses, their employment demands, and their capital utilization rates.

Market Structure and Fiscal Policy Effectiveness

2001 ◽  
Vol 103 (1) ◽  
pp. 147-164 ◽  
Author(s):  
Hassan Molana ◽  
Junxi Zhang
Keyword(s):  
Fiscal Policy ◽  
Market Structure ◽  
Policy Effectiveness
Sign in / Sign up

Export Citation Format

Share Document