Time‐varying consumption tax, productive government spending, and aggregate instability
نویسندگان
چکیده
منابع مشابه
Productive government spending, growth, and sequential voting
This paper considers an endogenous growth model with productive government spending in which overlapping generations of agents vote sequentially on policy. With sequential majority voting, there is a multiplicity of politico-economic equilibria originating from self-fulfilling policy expectations. Some of these equilibria are Pareto-inefficient and there are endogenous cycles. A constitutional ...
متن کاملHow Can Government Spending Stimulate Consumption?
Recent empirical work finds that government spending shocks can cause aggregate consumption to increase. This paper builds on the framework of imperfect information in Lucas (1972) and Lorenzoni (2009) to show how government spending can stimulate consumption. Owners of firms targeted by an increase in government spending perceive an increase in their permanent income relative to their future t...
متن کاملHow Does Government Spending Stimulate Consumption ?
Recent empirical work finds that government spending shocks cause aggregate consumption to increase over the business cycle, contrary to the predictions of Neoclassical and New Keynesian models. This paper proposes a mechanism to account for the consumption increase that builds on the framework of imperfect information in Lucas (1972) and Lorenzoni (2009). In my model, owners of firms targeted ...
متن کاملCapital Tax Competition with Ine cient Government Spending
Models of international tax competition typically assume the existence of a benevolent government. This paper presents a model which integrates the view of government as source of ine ciency with an analysis of distorting taxes on capital investment, savings and labor income in a common theoretical framework. The model yields the conclusion that the e ects of international tax coordination on t...
متن کاملGovernment Spending, Entry and the Consumption Crowding-in Puzzle
This paper documents empirically that net firm entry robustly rises after a US government spending expansion. We use this new finding to test the empirical validity of various model features that have been put forward to generate a crowding-in of consumption after an expenditure shock. In particular, we show that models with endogenous entry can simultaneously generate an increase in consumptio...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: International Journal of Economic Theory
سال: 2019
ISSN: 1742-7355,1742-7363
DOI: 10.1111/ijet.12216