In this paper we analyze the implications of demographic shift for an economy’s fiscal sustainability through lens of fiscal space. We formulate a stochastic dynamic general equilibrium, overlapping generations model to measure fiscal space in terms of budgetary room between the current and maximum tax revenues (the peaks of Laffer curves). We calibrate the model to Japan and US data and conduc...

the present paper examines the mitigating effect of monetary and fiscal policies on the “growth laffer curve” (glc) using a panel data of 38 high income countries over the period 2003-2012. adopting generalised method of moments (gmm) estimators, the paper finds evidence substantiating the presence of an inverted-u glc. moreover, the evidence suggests that the glc shifts downward by employing e...

This study investigates the impact of fiscal space on probability that government Indonesia will be able to implement counter-cyclical behavior. We use ordinary least squares and probit methods estimate policy reaction function. confirms increasing can increase execute its behavior policy. A proposal includes generating alternative sources revenues from taxes non-taxes redesigning subsidies tow...

* Allen Schick is Distinguished University Professor, University of Maryland, United States. This article was originally published in 2009 as Chapter 16 in the OECD publication Evolutions in Budgetary Practice (ISBN 978-92-64-06087-6). Fiscal space refers to the financial resources available to a government for policy initiatives through the budget and related decisions. This article reviews th...

In this article we present a model to examine the optimal location, size, and budget of open space conservation and the resulting impact on land values and local fiscal conditions in an urban area. Results indicate that open space conservation can transform the defining features of an urban landscape. A well-designed open space conservation program can improve municipal services, increase total...