Small changes in the fiscal stance of trading partners affect the domestic economy more than large changes. This might be attributed to the transitory nature of large changes and the reaction of the exchange rate and interest rate. Fiscal policy coordination it then more important during normal times.
Abstract. The three essays in this study investigate a series of issues recently emerged in the literature on fiscal policy. The first two chapters are more related to each other.
The first essay assesses the sustainability of public finances in the EMU by explicitly accounting for the impact of financial markets on the dynamic fiscal policy reaction function. The aim is to account for the expectations of sovereign debt lenders as regards the ability of the state to finance its obligations, which has not been integrated in.This dissertation examines the domestic and international effects of fiscal policy shocks on country risk, stock markets returns and trading partners. There are three essays in this study. First essay examines the relative impacts of macroeconomic, financial and political variables on country risk for five advanced economies; the US, the UK, Canada and Singapore for 1984:M1-2014:M12 and.The four essays are empirical and address some relevant issues from monetary economics and policy. In first three essays we aim at the way central banks sets their policy rates, which is usually described by central bank’s reaction function or a monetary policy rule (Taylor.
Abstract During recessions, fiscal, monetary and other credit provision policies are used together to combat falling consumption levels and stabilize output. Most such counter-cyclical stabilization policies are deemed effective when households use provided credit or cash towards raising consumption.
The empirical analysis of Qiang Dai and Thomas Philippon gave us a strong relationship holds between interest rates and fiscal policy adopted by the government, which can be stated that some An empirical macro-finance model was made that combines a no-arbitrage affine term construction model with a set of operational constraints that allow us to recognize fiscal policy shocks, and suggestion.
This dissertation consists of two chapters studying monetary and fiscal policy. In the first chapter, I study the welfare benefits and costs of increased central bank transparency in a dynamic model of costly information acquisition where agents can either choose to gather new costly information or remember information from the past for free.
This thesis consists of four essays in empirical macroeconomics. What Are the Effects of Fiscal Policy Shocks? A VAR-Based Comparative Analysis The literature using structural vector autoregressions (SVARs) to assess the effects of fiscal policy shocks strongly disagrees on the qualitative and quantitative response of key macroeconomic variables.
This paper describes the empirical regularities relating fiscal policy variables, the level of development and the rate of growth. We employ historical data, recent cross-section data, and newly constructed public investment series.
This dissertation comprises three essays that examine critical aspects of fiscal policy and explores important determinants of tax compliance in a developing country context.
Firstly, empirical findings show that the precise effects of fiscal policy on the current account highly depend on some crucial factors. For instance, according to the intertemporal model (Obstfeld, Rogoff, 1995), if an increase in government expenditure happens, then the trade balance will be worse only when the increase is temporary.
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Chapter 2 analyzes the political economy of delayed agreements over fiscal reforms, in a setting where two interest groups can bargain over the allocation of the cost of the stabilization, using an alternating offers model. This contrasts with Alesina and Drazen (1991), where the group that concedes earlier bears a fixed disproportionate share of the burden.
This thesis comprises of four essays on fiscal policy and fiscal policy adjustment. The first of these essays, Chapter 2, reviews a wide range of literature about fiscal policy. This chapter also discusses the sudden stop and fiscal policy during sudden stops episodes. Chapter 3 constructs a simple dynamic deterministic model to study how the speed of adjustment to a sustainable level of debt.
The dissertation consists of six self-contained chapters that are related to selected incentives in fiscal federalism by using the example of the federal system in Germany. The dissertation elaborates on political as well as fiscal incentives. Chapters 2 and 3 examine election cycles, based on the political business cycle theories. Chapter 2 examines whether election cycles occur in fees of.