Fiscal policy and the nominal term premium

Lorant Kaszab; Ales Marsal

Distortionary income taxation in a standard New Keynesian model substantially increases the nominal term-premium on long-term bonds relative to a model with lumpsum taxes. Also the empirical level of the nominal term premium can be matched with lower risk-aversion coefficient in case of a model with income taxes relative to a model with long-run inflation risks.

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Year of publication:	2013
Authors:	Kaszab, Lorant ; Marsal, Ales
Publisher:	Cardiff : Cardiff Univ, Cardiff Business School, Economics Section
Subject:	Economics \| zero-coupon bond \| nominal term premium \| third-order approximation \| distortionary income taxation \| Theorie \| Theory \| Zinsstruktur \| Yield curve \| Finanzpolitik \| Fiscal policy \| Zero-Bond \| Zero-coupon bond \| Einkommensteuer \| Income tax \| Risikoprämie \| Risk premium \| Anleihe \| Bond \| CAPM

Extent:	Online-Ressource (13 S.) graph. Darst.
Series:	Cardiff economics working papers. - Cardiff : [Verlag nicht ermittelbar], ISSN 1749-6101, ZDB-ID 2257349-5. - Vol. E2013/13
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/109056 [Handle]
Classification:	E13 - Neoclassical ; E31 - Price Level; Inflation; Deflation ; E43 - Determination of Interest Rates; Term Structure Interest Rates ; E44 - Financial Markets and the Macroeconomy ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10010222369