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Profit Taxation, Innovation and the Financing of Heterogeneous Firms
Ribi, Evelyn; Keuschnigg, Christian - 2010
Credit constraints are more frequent among growth companies with large investment opportunities. For the same reason … investment opportunities to a larger extent. (ii) Taxes which are neutral in a neoclassical world, still restrict expansion … investment of constrained firms by reducing free cash-flow and thereby discourage innovation. (iii) A revenue neutral increase in …
Persistent link: https://www.econbiz.de/10010270231
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Fiscal policy coordination in currency unions (at the zero lower bound)
Müller, Gernot Johannes; Hettig, Thomas; Mueller, Gernot - 2015
Within currency unions, according to the pre-crises consensus, countries can rely on fiscal policy to stabilize economic activity locally. Monetary policy's role, in turn, is to stabilize economic activity at the union level. Against this background, we reassess the optimal degree of fiscal...
Persistent link: https://www.econbiz.de/10011301422
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Innovation and the Optimal Rate of Inflation
Weber, Henning - 2015
Empirical data suggest that new rms tend to grow faster than incumbent firms in terms of their productivity. A sticky-price model with learning-by-doing in new firms fits this data and predicts that for plausible calibrations, the optimal long-run inflation rate is positive and between 0.5% and...
Persistent link: https://www.econbiz.de/10011301683
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Labor market policy instruments and the role of economic turbulence
Schuster, Philip - 2010
Times of high unemployment always inspire debates on the role of labor market policy and its optimal implementation. This paper uses a dynamic model of search unemployment and bilateral wage bargaining, rich enough to analyze a set of policy instruments with respect to their employment and...
Persistent link: https://www.econbiz.de/10010270094
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Debt-Sensitive Majority Rules
Grimm, Oliver; Becker, Johannes; Gersbach, Hans - 2010
We examine debt-sensitive majority rules. According to such a rule, the higher a planned public debt, the higher the necessary parliamentary majority to approve it. In a two-period model, we compare debt-sensitive majority rules with the simple majority rule when individuals differ regarding...
Persistent link: https://www.econbiz.de/10010270120
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The Regional Effects of Macroeconomic Shocks in China
Chen, Anping; Groenewold, Nicolaas - 2015
on the regional distribution of output of shocks to national macroeconomic variables such as GDP and investment. This is … instruments such as investment expenditure. It is likely that such national shocks will have differential regional impacts and so … provincial outputs of shocks to aggregate output and investment. We find great diversity of effects across the provinces with …
Persistent link: https://www.econbiz.de/10011400309
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What is Happening with the Government Expenditure of Developing Countries - A Panel Data Study
Shonchoy, Abu - 2010
The paper focuses on the recent pattern of government expenditure for developing countries and estimates the determinants which may have influenced government expenditure. Using a panel data set for 111 developing countries from 1984 to 2004, this study finds evidence that political and...
Persistent link: https://www.econbiz.de/10010301505
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Learning By Doing in New Firms and the Optimal Rate of Inflation
Weber, Henning - 2013
Empirical data suggest that new fi rms tend to grow faster than incumbent firms in terms of their productivity. A sticky-price model with learning-by-doing in new firms fi ts this data and predicts that for plausible calibrations, the optimal long-run inflation rate is positive and between 0.5%...
Persistent link: https://www.econbiz.de/10010329296
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Interactions of Monetary and Macroprudential Policies in a Model of the Korean Economy
Afanasyeva, Elena; Karasulu, Meral - 2013
We use a microfounded dynamic stochastic general equilibrium (DSGE) model with banks to study interactions between monetary and macroprudential policies in a small open economy. The model is calibrated/estimated for Korea. Cooperation of monetary and macroprudential policies is optimal under a...
Persistent link: https://www.econbiz.de/10010329407
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"Haircuts" for the EMU Periphery: Virtue or Vice?
Neck, Reinhard; Blüschke, Dmitri - 2013
We use a dynamic game model of a two-country monetary union to study the impacts of an exogenous fall in aggregate demand, the resulting increase in public debt, and the consequences of a sovereign debt haircut for a member country or bloc of the union. In this union, the governments of...
Persistent link: https://www.econbiz.de/10010329410