Found 467 article(s) in category 'Fiscal Policy'

The Political Economy of Transportation Investment

The Political Economy of Transportation Investment. Edward Glaeser, January 2017, Paper, “Will politics lead to over-building or under-building of transportation projects? In this paper, we develop a model of infrastructure policy in which politicians overdo things that have hidden costs and underperform tasks whose costs voters readily perceive. Consequently, national funding of transportation leads to overspending, since voters more readily perceive the upside of new projects than the future taxes that will be paid for distant highways. Yet when local voters are well-informed, the highly salient nuisances of local construction, including land taking and noise, lead to under-building. This framework explains the decline of urban mega-projects in the US (Altshuler and Lubero§ 2003) as the result of increasingly educated and organized urban voters. Our framework also predicts more per capita transportation spending in low-density and less educated areas, which seems to be empirically correct.Link

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The Trump Deficit

The Trump Deficit. Kenneth Rogoff, January 16, 2017, Opinion, “It is a post-financial-crisis myth that austerity-minded conservative governments always favor fiscal prudence, while redistribution-oriented progressives view large deficits as the world’s biggest free lunch. This simplistic perspective, while perhaps containing a grain of truth, badly misses the true underlying political economy of deficits.Link

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Larry Summers on Public Investment

Larry Summers on Public Investment. Lawrence Summers, January 9, 2017, Video, “Larry Summers, both a former Obama administration White House Economic Council director and secretary of the treasury in the Clinton administration, made remarks on public investments during the Trump administration. He stressed the importance of public investments in transportation, drinking water, and education, and for the need to responsibly finance them. Following his remarks, Ed Glaeser, a Harvard University economics professor, discussed with Mr. Summers the merits and pitfalls of various financing mechanisms to fund infrastructure projects.Link

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On Welfare Economics in the Principles Course

On Welfare Economics in the Principles Course. N. Gregory Mankiw, 2016, Paper, “I much enjoyed reading these articles by Steve Schmidt and Jonathan B. Wight on the normative underpinnings of how we teach introductory economics. I have long believed that teaching the fundamentals of economics to the next generation of voters is among the highest callings of our profession. It is therefore useful to regularly reflect on whether we are doing it well and how we might do it better.Link

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Total Economic Value of US National Park Service Estimated to be $92 Billion: Implications for Policy

Total Economic Value of US National Park Service Estimated to be $92 Billion: Implications for Policy. Linda Bilmes, 2016, Paper, “America’s national parks “are the best idea we ever had.” So said Pulitzer Prize-winning American author Wallace Stegner. A new survey suggests Americans also consider the National Park Service (both the parks, and the associated programs of the agency which runs them) to be of the most valuable assets we ever had—worth some $92 billion a year.Link

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Progress and Confusion: The State of Macroeconomic Policy

Progress and Confusion: The State of Macroeconomic Policy. Kenneth Rogoff, Lawrence Summers, 2016, Book, “What will economic policy look like once the global financial crisis is finally over? Will it resume the pre-crisis consensus, or will it be forced to contend with a post-crisis “new normal”? Have we made progress in addressing these issues, or does confusion remain? In April of 2015, the International Monetary Fund gathered leading economists, both academics and policymakers, to address the shape of future macroeconomic policy. This book is the result, with prominent figures—including Ben Bernanke, Lawrence Summers, and Paul Volcker—offering essays that address topics that range from the measurement of systemic risk to foreign exchange intervention.Link

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Trump Can’t Repeal the Laws of Economics

Trump Can’t Repeal the Laws of Economics. Lawrence Summers, November 14, 2016, Opinion, “Following a brief market plunge, the president-elect’s speech last Tuesday night was more conciliatory than many expected and emphasized his commitment to infrastructure investment. Investors have, on balance, concluded that the combination of a shift to very expansionary fiscal policy and major reductions in regulation in sectors ranging from energy to finance to drug pricing will raise demand and reflate the U.S. economy.Link

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Multilevel Geographies of Poverty in India

Multilevel Geographies of Poverty in India. S V Subramanian, November 2016, Paper, “Since the economic reforms in India in 1991, there has been a proliferation of studies examining trends of economic development and poverty across the country. To date, studies have used single-level analyses with aggregated data either at the state level or, less commonly, at the region and district levels. This is the first comprehensive and empirical quantification of the relative importance of multiple geographic levels in shaping poverty distribution in India. We used multilevel logistic models to partition variation in poverty by levels of states, regions, districts, villages, and households. We also mapped the residuals at the state, region and district levels to visualize the geography of poverty. We used data on 35 states, 88 regions, 623 districts, 25,390 villages and 202,250 households from the National Sample Survey in years 2009-10 and 2011-12.” Link

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Is it the “How” or the “When” that Matters in Fiscal Adjustments?

Is it the “How” or the “When” that Matters in Fiscal Adjustments? Alberto Alesina, October 2016, Paper, “Using data from 16 OECD countries from 1981 to 2014, we find that the composition of fiscal adjustments is much more important than the state of the cycle in determining their effects on output. Fiscal adjustments based upon spending cuts are much less costly than those based upon tax increases, regardless of whether the adjustment starts in a recession or not.Link

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