1.

Record Nr.

UNINA9910955868003321

Autore

Sgherri Silvia

Titolo

Mr. Ricardo’s Great Adventure : : Estimating Fiscal Multipliers in a Truly Intertemporal Model / / Silvia Sgherri, Tamim Bayoumi

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2006

ISBN

9786613830661

9781462346776

1462346774

9781451995411

1451995415

9781283518215

128351821X

9781451985993

1451985991

Edizione

[1st ed.]

Descrizione fisica

1 online resource (30 p.)

Collana

IMF Working Papers

Altri autori (Persone)

BayoumiTamim

Soggetti

Fiscal policy

Multiplier (Economics)

Aggregate Factor Income Distribution

Consumption

Disposable income

Econometric models

Econometrics & economic statistics

Econometrics

Economics

Estimation techniques

Estimation

Income

Macroeconomics

Macroeconomics: Consumption

National income

Personal income

Personal Income, Wealth, and Their Distributions

Saving

Wealth

United States



Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"July 2006".

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. INTRODUCTION""; ""II. SOME THEORY""; ""III. SOME ESTIMATES""; ""IV. SOME ANALYSIS""; ""V. SOME CONCLUSIONS""; ""REFERENCES""

Sommario/riassunto

We estimate tax multipliers in a "Blanchard-Yaari" consumption model where Ricardian equivalence is broken because the private sector discounts the future at a faster rate than the real rate of interest. The model fits U.S. data since 1955 extremely well-entailing a discount wedge of around 20 percent a year and fiscal multipliers of 0.15-0.4-depending on the permanence of the change in taxes/transfers, and is much superior to one that assumes some consumers are fully Ricardian and others follow simple rules of thumb. The implied high private sector rate of discount has wide implications for policymakers.