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Public Infrastructure Investment, Output Dynamics, and Balanced Budget Fiscal Rules

Duarte Bom, P.R.; Ligthart, J.E. - Tilburg University, Center for Economic Research - 2011

We study the dynamic output and welfare effects of public infrastructure investment under a balanced budget fiscal rule, using an overlapping generations model of a small open economy. The government finances public investment by employing distortionary labor taxes. We find a negative short-run...

Persistent link: https://www.econbiz.de/10011090750

Output Dynamics, Technology, and Public Investment

Duarte Bom, P.R.; Heijdra, B.J.; Ligthart, J.E. - Tilburg University, Center for Economic Research - 2010

The paper studies the dynamic output effects of public infrastructure investment in a small open economy. We develop an overlapping generations model that includes a production externality of public capital and a wealth effect on labor supply. Public capital enters the firm's production function...

Persistent link: https://www.econbiz.de/10011090760

Designing fiscal and monetary institutions in a second-best world

Bovenberg, A.L.Bovenberg; Beetsma, R.M.W.J. - Tilburg University, Center for Economic Research - 1995

This paper explores how fiscal and monetary policy interact if commitment and access to lump-sum taxation are limited. We analyze how equilibrium outcomes for inflation, employment, and public spending are affected by the structural features of an economy, such as money holdings, outstanding...

Persistent link: https://www.econbiz.de/10011090885

The interaction of fiscal and monetary policy in a monetary union : Balancing credibility and flexibility

Bovenberg, A.L.Bovenberg; Beetsma, R.M.W.J. - Tilburg University, Center for Economic Research - 1995

This paper explores how decentralized, national fiscal policies interact with a common monetary policy in a monetary union. We show that fiscal policy plays a more important ro le in stabilizing country-specific shocks than with national monetary policies. Whereas monetary u nification with an...

Persistent link: https://www.econbiz.de/10011090899

The optimality of a monetary union without a fiscal union

Bovenberg, A.L.Bovenberg; Beetsma, R.M.W.J. - Tilburg University, Center for Economic Research - 1998

Persistent link: https://www.econbiz.de/10011091080

Output Stabilization in EMU : IS there a Case for EFTS?

van Aarle, B.; Hougaard Jensen, S.E. - Tilburg University, Center for Economic Research - 1996

Macroeconomic performance in the Economic and Monetary Union (EMU) will be impaired if macroeconomic shocks are largely …

Persistent link: https://www.econbiz.de/10011092163

Designing fiscal and monetary institutions for a European Monetary Union

Bovenberg, A.L.Bovenberg; Beetsma, R.M.W.J. - Tilburg University, Center for Economic Research - 1995

This paper explores under what conditions a European Monetary Union (EMU) is an optimum currency area. The scope for an … EMU increases with convergence of structural and fiscal policies, small money holdings, a conservative European Central … Bank, and dependent national central banks. How national policies affect the rest of the union once the EMU has been formed …

Persistent link: https://www.econbiz.de/10011092176

Monetary union without fiscal coordination may discipline policymakers

Bovenberg, A.L.Bovenberg; Beetsma, R.M.W.J. - Tilburg University, Center for Economic Research - 1995

We show that, with benevolent policymakers and fiscal leadership, monetary unification reduces inflation, taxes and public spending. These disciplining effects of a monetary union, which rise with the number of fiscal players in the union, are likely to raise welfare. Joining an optimally...

Persistent link: https://www.econbiz.de/10011092286

Fiscal Policy in a Stochastic Model of Endogenous Growth

Canton, E.J.F. - Tilburg University, Center for Economic Research - 1997

It is nowadays widely believed that public schooling may contribute favourably to long-term economic growth. The income tax rates that are needed to finance government spending typically show an erratic time pattern. Such tax randomness could increase the intensity of the business cycle. Thus,...

Persistent link: https://www.econbiz.de/10011092367

Time inconsistency in environmental policy : Tax earmarking as a commitment solution

Marsiliani, L.; Renstrom, T.I. - Tilburg University, Center for Economic Research - 1999

Persistent link: https://www.econbiz.de/10011092588