A New-Open-Economy Macro Model for Fiscal Policy Evaluation

Author/creator Muir, Dirk Author
Other author Laxton, Douglas Author
Other author Botman, Dennis P. J. Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description28 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation We develop a New-Open-Economy-Macro model in which Ricardian equivalence does not hold because of (i) distortionary labor and corporate income taxation; (ii) limited asset market participation; and (iii) because the overlapping-generations structure results in a disconnect between current and future generations. We consider a permanent increase in government debt following a cut in labor or corporate income taxes in a small and large open economy. We analyze the sensitivity of the results to the key structural parameters of the model and argue that under plausible assumptions there will be significant crowding-out effects associated with permanent increases in government debt.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451908411
ISBN1451908415 (E-Book) Active Record
Stock number00013468

Availability

Library Location Call Number Status Item Actions
Electronic Resources Access Content Online ✔ Available