According to the Keynesian Model, the effectiveness of fiscal stabilization policy will rest on the size of fiscal multipliers and one of the most important and effective factors on the fiscal increasing coefficient can be the same crowding out & crowding in effects of the government fiscal...

Unprecedented is a word that best describes the current state of advanced economies. Interest rates are low in many advanced countries and negative in a few others suggesting that monetary policy has lost its effectiveness. The economic policy tool that has not been implemented yet by many...

Tax incentives are a common policy to attract investment and create formal employment in developing countries. However, scarce evidence is available that study the impact of such reforms. This paper estimates the effect of the Organic Law for Productive Development, Attraction of Investments,...

The quantitative HANK model, incorporating the coordination of hours worked in production, yields an improved empirical fit along two dimensions: a more concentrated steady-state distribution of hours worked and lower marginal propensities to earn (MPEs) with positive but moderate fiscal...

The paper explores the differences between IRAP (the Regional Tax on Productive Activities) and CBIT (the Comprehensive Business Income Tax), which approximately corresponds to allow the deduction of labor cost from the taxable base of IRAP. By developing a DSGE model that ncorporates business...

This study empirically investigates the impacts of central government budget deficits and economic freedom on per capita real economic growth in OECD nations over the period 2003–2008. Economic growth is measured by the percentage growth rate of purchasing-power-parity adjusted real per capita...

This paper considers a simple model in which government spending is productive and has a complementary relationship with private consumption to study the response of the latter to government spending. We discuss how these two characteristics can yield empirical observations that indicate a...

The creation of employment and its formalization is, undoubtedly, a controversial and relevant topic in Argentina. At present, a law project on this subject is under debate: "Promoting Registered Employment and Labor Fraud Prevention", whose aim is to promote employment and/or formalization of...

Abstract In response to the great recession of 2008, the UK government used a temporary value-added tax rate reduction as its main stimulus policy. From 1 December 2008 to 31 December 2009, the standard-rate of value-added tax was reduced from 17.5 to 15 percent while the existing zero-rate did...

Many countries badly mismanage their natural resource endowments. We argue that a fundamental change in paradigm is needed. Specifically, we advocate treating non-renewable natural resources as a finite shared inheritance asset, and extraction as the sale of the inherited wealth. We identify...