Optimal fiscal policy in a model of firm entry and financial frictions
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DOI: 10.1016/j.red.2019.05.001
Abstract: This paper develops a general equilibrium model of firm entry and financial frictions. Movements in the volatility of firm-level shocks and aggregate productivity generate procyclical entry and a countercyclical firm default rate. We derive analytical… read more here.
Keywords: entry; optimal fiscal; firm entry; firm ... See more keywords
Dynamic optimal fiscal policy in a transfer union
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DOI: 10.1016/j.red.2020.10.010
Abstract: Abstract Transfers between regions within a federal or supranational entity are highly prevalent and may yield substantial benefits; however, such transfers are also likely to have an impact on the involved regions' incentives to tax… read more here.
Keywords: fiscal policy; policy; capital taxes; infrastructure ... See more keywords
Optimal fiscal policy rule for achieving fiscal sustainability: the Japanese case
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DOI: 10.1504/gber.2019.10018122
Abstract: Japan's debt-to-GDP ratio is the highest among OECD countries. While the Domar condition and Bohn's conditions are often used in the literature to check whether a government's debt situation is in a dangerous zone, this… read more here.
Keywords: optimal fiscal; government budget; condition; fiscal sustainability ... See more keywords