Found 468 article(s) in category 'Fiscal Policy'

The Effects of Fiscal Consolidations: Theory and Evidence

The Effects of Fiscal Consolidations: Theory and Evidence. Alberto Alesina, May 2017, Paper, “We investigate the macroeconomic effects of fiscal consolidations based upon government spending cuts, transfers cuts and tax hikes. We extend a narrative dataset of fiscal consolidations, finding details on over 3500 measures. Government spending and transfer cuts reduce output by less than tax hikes. Standard New Keynesian models match our results when fiscal shocks are persistent. Wealth effects on aggregate demand mitigates the impact of a persistent spending cut. Static distortions caused by persistent tax hikes cause larger shifts in aggregate supply under sticky prices. This channel explains different sizes of multipliers found in fiscal stimuli compared to consolidation plans.Link

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No Idea What Trump Means by Reciprocal Tax

No Idea What Trump Means by Reciprocal Tax. Martin Feldstein, May 3, 2017, Video, “Martin Feldstein, professor of economics at Harvard University, discusses his thoughts on tax policy and the Trump administration. He speaks with Bloomberg’s David Westin and Jonathan Ferro on “Bloomberg Daybreak: Americas.” (Source: Bloomberg)” Two Parts –  Link  1 “Reciprocal Tax” Link 2 – “Big Issue is Tax Reform

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Subsidizing Health Insurance for Low-Income Adults: Evidence from Massachusetts and Implications for Future Health Reforms

Subsidizing Health Insurance for Low-Income Adults: Evidence from Massachusetts and Implications for Future Health Reforms. Nathaniel Hendren, Mark Shepard, May 2017, Paper, “How much are low-income individuals willing to pay for health insurance? What are the implications for insurance market reforms that change government subsidies? Using administrative data from Massachusetts’ subsidized insurance exchange in 2009-2013, we exploit discontinuities in the premium subsidy schedule to estimate willingness to pay and costs of insurance among low-income adults. We obtain three main results…Link

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How Best to Tax Business

How Best to Tax Business. N. Gregory Mankiw, April 23, 2017, Opinion, “The details of the tax code may not make your heart sing, but they are enormously important and, at long last, they may be changing. In fact, the next 12 months are shaping up to be a critically important time.  Despite an uneven start, tax reform is on the agenda in Congress. And the ideas being considered, especially regarding business taxation, are not mere tweaks to our ossified system. They would profoundly alter how the government raises money and upend the incentives for private decision makers. This is fascinating to tax policy nerds like me. But it is important for everyone to understand.Link

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Larry Summers Sees More Downside Risks

Larry Summers Sees More Downside Risks. Lawrence Summers, April 12, 2017, Video, “Former U.S. Treasury Secretary Lawrence Summers said that while it’s difficult to call a market top, valuations have gotten ahead of the economy in recent months. “I’m not sure that I see what in the economy would justify a market move of the magnitude we’ve seen in the last months,” Summers said in an interview Wednesday on Bloomberg Television. “It wouldn’t surprise me if people look back and see that there was a bit of a sugar high in some of the valuations that we’re seeing.”” Link

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Optimal Taxation and Insurance Using Machine Learning

Optimal Taxation and Insurance Using Machine Learning. Maximilian Kasy, April 10, 2017, Paper, “How should one use (quasi-)experimental evidence when choosing policies such as tax rates, health insurance copay, unemployment benefit levels, class sizes in schools, etc.? This paper suggests an approach based on maximizing posterior expected social welfare, combining insights from (i) optimal policy theory as developed in the field of public finance, and (ii) machine learning using Gaussian process priors. We provide explicit formulas for posterior expected social welfare and optimal policies in a wide class of policy problems.Link

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Conceptual and Historical Foundations of Foreign Aid

Conceptual and Historical Foundations of Foreign Aid. Dustin Tingley, April 2017, Paper, “Foreign aid is a policy instrument of limited budgetary scope that nonetheless generates highly contentious debate. Yet while the contemporary scholarly literature almost exclusively considers aid in the post-World War II era, we argue that also considering aid in earlier periods of history helps to better understand the broader politics of foreign aid. Neglect of this deeper history of foreign aid specifically produces three misconceptions: that foreign aid is a uniquely modern policy instrument, that foreign aid is relatively homogenous in donor intent, and that foreign aid’s scope is primarily limited to the contemporary humanitarian interventions upon which the bulk of scholarly analysis is centered.Link

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