Search Results - subject:"Budget constraint"

Ensuring Fiscal Sustainability in G-7 Countries

Leigh, Daniel; Hauner, David; Skaarup, Michael - International Monetary Fund (IMF) - 2007

Rising longevity, falling fertility rates, and the retirement of the baby boom generation will substantially raise age-related government spending in most advanced and many emerging market countries. This paper assesses the evolution of fiscal sustainability for each of the G-7 countries using...

Persistent link: https://www.econbiz.de/10005769069

An Endogenous Attitude to Firms’ Risk Aversion: A Model

Bauer, Michal - In: Czech Journal of Economics and Finance (Finance a uver) 57 (2007) 7-8, pp. 382-399

assumptions about a firm’s financing – access to the equity market, the possibility of a soft budget constraint – allows the … capital market, budget constraint softness, and degree of uncertainty about future prices may play important roles toward …

Persistent link: https://www.econbiz.de/10005808644

Plea Bargaining with Budgetary Constraints

Mongrain, Steeve; Roberts, Joanne - Department of Economics, Simon Fraser University - 2007

In this paper, we construct a simple model that illustrates a perverse effect associated with plea bargaining in which an increase in sanctions can lead to reduced deterrence. This finding is derived from the interaction of binding budgetary constraints and plea bargaining. In an environment...

Persistent link: https://www.econbiz.de/10005597107

Policy Challenges of Population Aging in Ireland

Iakova, Dora M.; Botman, Dennis P. J. - International Monetary Fund (IMF) - 2007

The projected rise in age-related government spending as a share of GDP in Ireland over the next forty years is among the highest in the euro area. In the absence of reforms, public debt will increase to unsustainable levels. This paper uses the IMF's Global Fiscal Model to compare the...

Persistent link: https://www.econbiz.de/10005599602

Fiscal Adjustments; Determinants and Macroeconomic Consequences

Plekhanov, Alexander; Kumar, Manmohan S.; Leigh, Daniel - International Monetary Fund (IMF) - 2007

The paper analyzes the determinants of success of recent fiscal consolidations in the OECD countries as well as the short-run and long-run effects of fiscal adjustments on economic activity by looking at fourteen case studies, panel data for OECD countries, and the results of simulations using a...

Persistent link: https://www.econbiz.de/10005599708

Fiscal Policy and the Exchange Rate; Current Account Nexus

Kim, Jun Il - International Monetary Fund (IMF) - 2007

By using a simple intertemporal model of the current account, I show that the exchange rate elasticity of the trade balance would ceteris paribus be smaller for countries with higher government spending ratios (relative to GDP) and with more limited scope for private consumption smoothing. This...

Persistent link: https://www.econbiz.de/10005604879

Fiscal Management of Scaled-Up Aid

Gupta, Sanjeev; Last, Duncan; Adenauer, Isabell; … - International Monetary Fund (IMF) - 2007

This paper discusses the role of fiscal policy and fiscal institutions in managing scaled-up aid. In an environment of volatile scaled-up aid, fiscal policy formulation should be anchored in medium-term frameworks, incorporating a longer-term view of potential resource availability and spending...

Persistent link: https://www.econbiz.de/10005605053

Funding source and soft budget constraint

Breuillé, Marie-Laure; Madiès, Thierry; Taugourdeau, … - EconomiX, Université Paris Ouest-Nanterre la Défense … - 2007

This paper analyses the impact of funding source of the bailout on the softness of the regional budget constraint. We … able to limit the soft budget constraint phenomenon. …

Persistent link: https://www.econbiz.de/10005763150

Tradable deficit permits: a way to ensure sub-national fiscal discipline?

Breuillé, Marie-Laure - EconomiX, Université Paris Ouest-Nanterre la Défense … - 2007

This paper proposes a system of tradable deficit permits for implementing budgetary austerity at the local level. We evaluate the efficiency of the fiscal retrenchment allocation in a dynamic setting with a commitment problem. The way rights are allcated and traded on the market turns out to be...

Persistent link: https://www.econbiz.de/10005763152

Seigniorage

Buiter, Willem - Centre for Economic Performance, LSE - 2007

budget constraint' and consolidated 'government intertemporal budget constraint' into the separate accounts and budget … independent, it is essential to decompose the familiar consolidated ‘government budget constraint’ and consolidated ‘government … intertemporal budget constraint’ into the separate accounts and budget constraints of the Central Bank and the Treasury. Only by …

Persistent link: https://www.econbiz.de/10005796150