Optimal Fiscal Policy in an Open Economy with Time-Varying Elasticities

1986 ◽  
Vol 52 (3) ◽  
pp. 763
Author(s):  
Jagdeep S. Bhandari ◽  
Donald A. Hanson
Keyword(s):  
Fiscal Policy ◽  
Open Economy ◽  
Time Varying ◽  
Optimal Fiscal Policy

scholarly journals Optimal Fiscal Policy in an Open Economy with Capital Income Shifting and Consumer Cross-Border Purchases

2013 ◽  
Author(s):  
Janusz Adam Kudda ◽  
Agata Agnieszka Kocia ◽  
Katarzyna Kopczewska ◽  
Robert Kruszewski ◽  
Konrad Walczyk
Keyword(s):  
Fiscal Policy ◽  
Open Economy ◽  
Income Shifting ◽  
Capital Income ◽  
Cross Border ◽  
Optimal Fiscal Policy

HABIT FORMATION AND GOVERNMENT SPENDING IN A SMALL OPEN ECONOMY

2003 ◽  
Vol 7 (3) ◽  
pp. 407-423 ◽  
Author(s):  
Cem Karayalçin
Keyword(s):  
Fiscal Policy ◽  
General Equilibrium ◽  
Current Account ◽  
Open Economy ◽  
Equilibrium Model ◽  
Government Spending ◽  
Time Preference ◽  
Small Open Economy ◽  
Long Run ◽  
Fiscal Shocks

The paper studies the effects of an expansionary fiscal policy in a general equilibrium model of a small open economy. Households are assumed to possess habit-forming, endogenous rates of time preference. In response to fiscal shocks, the model generates cyclical endogenous persistence and procyclical time paths for consumption, employment, and investment, as well as a countercyclical path for the current account. Furthermore, fiscal shocks are shown to have positive long-run effects on output and negative long-run effects on consumption.

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