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Public Finance in a Nutshell : A Cobb Douglas Teaching Tool for General Equilibrium Tax Incidence and Excess Burden

Fullerton, Don - 2017

To help first- or second-year graduate students in economics apply their theoretical training, this paper shows how to solve a simple and intuitive computable general equilibrium (CGE) model using a calculator. Because this simplified Harberger model uses Cobb Douglas functional forms for...

Persistent link: https://www.econbiz.de/10012964910

Long-Term Debt and Optimal Policy in the Fiscal Theory of the Price Level

Cochrane, John H. - 2021

The fiscal theory says that the price level is determined by the ratio of nominal debt to the present value of real … primary surpluses. I analyze long-term debt and optimal policy in the fiscal theory. I find that the maturity structure of the …

Persistent link: https://www.econbiz.de/10013220940

Understanding the Fiscal Theory of the Price Level

Christiano, Lawrence J.; Fitzgerald, Terry J. - 2021

We review the fiscal theory of the price level. We place special emphasis on the theory's implications for the …

Persistent link: https://www.econbiz.de/10013223567

The Fallacy of the Fiscal Theory of the Price Level

Buiter, Willem H. - 2021

or unsound argument'. The 'fiscal theory of the price level', recently re-developed by Woodford, Cochrane, Sims and … proponents of the fiscal theory of the price level do not accept the fundamental proposition that the government's intertemporal …. Policy conclusions could be drawn from the fiscal theory of the price level that would be harmful if they influenced the …

Persistent link: https://www.econbiz.de/10013223568

Debt and Taxes in the Theory of Public Finance

Feldstein, Martin S. - 2021

If a specified amount of government spending must be financed, how should that finance be divided between taxes and government borrowing? In the case of a temporary increase in government spending, it has been argued that debt finance is optimal because the small increments in all future tax...

Persistent link: https://www.econbiz.de/10013225423

Reforming Budgetary Language

Bradford, David F. - 2021

In the context of several examples of problems associated with present budgetary conventions, I revisit Musgrave's conceptual division of the government's program into Allocation, Distribution and Stabilization Branch subbudgets. I suggest progress towards Musgrave's ideal of a more informative...

Persistent link: https://www.econbiz.de/10013237545

A Fiscal Theory of Sovereign Risk

Uribe, Martín - 2021

This paper presents a fiscal theory of sovereign risk and default. Under certain monetary-fiscal regimes, the risk of …

Persistent link: https://www.econbiz.de/10013240546

Is the Fiscal Theory of the Price Level Learnable?

McCallum, Bennett T. - 2010

This paper presents a prototype model for development of the fiscal theory of the price level.' In this simple setting …, the fiscal theory's distinctiveness relies upon adoption of a bubble solution, rather than the rational …

Persistent link: https://www.econbiz.de/10013136352

A Requiem for the Fiscal Theory of the Price Level

Farmer, Roger E. A. - 2019

We demonstrate that the Fiscal Theory of the Price Level (FTPL) cannot be used to determine the price level uniquely in …

Persistent link: https://www.econbiz.de/10012894996

Public Sector Dynamics

Auerbach, Alan J. - 2021

Using Musgrave's The Theory of Public Finance as a starting point, this paper reviews the scholarly developments in …

Persistent link: https://www.econbiz.de/10013249162