To optimize its choice of policy instruments, the government faces a double ‘budget constraint’, that results a) from the trade-off between increasing tax rates and an individual’s consumption possibility and b) from the trade-off between pleasing the elite and the population. Operating under...
The model implies that the government spending multiplier is substantially lower in a fundamental liquidity trap than in normal times, in contrast to the predictions of standard New Keynesian models. Table 1 lists some of the existing evidence on the price response to government spending shocks that...
18、eturned to single digits (figure 3) and the government budget deficit halved as a share of gdp between 2003 and 2006.figure 3: inflation 1986 to 2006 (percent)source: wdi and imf (2007)another important factor that is often assumed to have influenced the latest positive economic developm...
A central equation for the fiscal theory of the price level (FTPL) is the government budget constraint (or "government valuation equation"), which equates ... M Bassetto,W Cui - 《Discussion Papers》 被引量: 13发表: 2018年 The Fiscal Theory of the Price Level The article examines the ...
Emphasizing the importance of agriculture is a consistent policy for the Chinese government while the country has been rapidly industrialized in this period. Thus, China provides us a natural experiment in understanding the evolving role of agriculture with structural change. There are many approaches ...
Our result of cointegration with a structural break is consistent with a strict interpretation of the government's intertemporal budget constraint since it implies a zero discounted value of the public debt. However, since the cointegration-regression slope parameter is significantly less than one (...
…Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a press release. “…it just restores windfalls for folks who have other government pensions. What an incredulous set of events.”…In short: By allowing public workers to double-dip into retirement benefits...
Public sentiment towards the police is a matter of great interest in the United States, as reports on police misconduct are increasingly being published in mass and social media. Here, we test how the public’s perception of the police can be majorly sha
The one-period government budget constraint at t is(2)bt(gt)+gt=τt(gt)ht(gt)+∑gt+1pt(gt+1,gt)bt+1(gt+1,gt). Equivalently, using the proper no-Ponzi game condition, we get the single intertemporal budget constraint(3)b0+∑t=0∞∑gtqt(gt)gt≤∑t=0∞∑gtqt(gt)τt(gt)ht...
Given that the upward trend must halt, Fig. 2 gives no clue at all when it will come to an end, and how. We take a few stabs at empirically assessing the model. One approach is similar to Bohn (2005), who examines the sustainability of the U.S. government budget deficit. We ask,...