1.

Record Nr.

UNINA9910956118903321

Autore

Muir Dirk

Titolo

A New-Open-Economy Macro Model for Fiscal Policy Evaluation / / Dirk Muir, Douglas Laxton, Dennis Botman, Andrei Romanov

Pubbl/distr/stampa

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

ISBN

9786613827296

9781462316519

1462316514

9781452757216

1452757216

9781283514842

1283514842

9781451908411

1451908415

Edizione

[1st ed.]

Descrizione fisica

1 online resource (46 p.)

Collana

IMF Working Papers

Altri autori (Persone)

BotmanDennis

LaxtonDouglas

RomanovAndrei

Soggetti

Fiscal policy - Econometric models

Macroeconomics

Banks and Banking

Consumption

Debt Management

Debt

Debts, Public

Economics

Finance

Financial services

Fiscal Policies and Behavior of Economic Agents: General

Fiscal Policy

Income economics

Income tax

Interest rates

Interest Rates: Determination, Term Structure, and Effects

International Policy Coordination and Transmission

Labor economics

Labor Economics: General

Labor taxes



Labor

Labour

Macroeconomics: Consumption

National accounts

Open Economy Macroeconomics

Personal Income and Other Nonbusiness Taxes and Subsidies

Public debt

Public finance & taxation

Public Finance

Real interest rates

Saving

Sovereign Debt

Taxation

Taxes

Wealth

Welfare & benefit systems

United States

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"February 2006."

Nota di bibliografia

Includes bibliographical references (p. 23-26).

Nota di contenuto

""Contents""; ""I. Introduction""; ""II. The Model""; ""III. The Effects of Tax Cuts in a Small and Large Open Economy""; ""IV. Sensitivity Analysis""; ""V. Conclusion""; ""References""

Sommario/riassunto

We develop a New-Open-Economy-Macro model in which Ricardian equivalence does not hold because of (i) distortionary labor and corporate income taxation; (ii) limited asset market participation; and (iii) because the overlapping-generations structure results in a disconnect between current and future generations. We consider a permanent increase in government debt following a cut in labor or corporate income taxes in a small and large open economy. We analyze the sensitivity of the results to the key structural parameters of the model and argue that under plausible assumptions there will be significant crowding-out effects associated with permanent increases in government debt.