Found 457 article(s) in category 'Fiscal Policy'

Productivity Growth and Countercyclical Budgetary Policy: What Do We Learn from OECD Panel Data?

Productivity Growth and Countercyclical Budgetary Policy: What Do We Learn from OECD Panel Data? Philippe Aghion, June 2008, Paper. “A common view among macroeconomists is that there is a decoupling between macroeconomic policy (e.g., budget deficit, taxation, money supply), which should primarily affect price and income stability and long-run economic growth, which, if anything, should depend only upon structural characteristics of the economy (property right enforcement, market structure, market mobility, and so forth). That macroeconomic policy should not be a key determinant of growth…” Link

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Smart Taxes: An Open Invitation to Join the Pigou Club

Smart Taxes: An Open Invitation to Join the Pigou Club. N. Gregory Mankiw, March 8, 2008, Paper. “Many economists favor higher taxes on energy-related products such as gasoline, while the general public is more skeptical. This essay discusses various aspects of this policy debate. It focuses, in particular, on the use of these taxes to correct for various externalities—an idea advocated long ago by British economist Arthur Pigou.” Link

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Assessing pacification policy in Iraq: Evidence from Iraqi financial markets

Assessing pacification policy in Iraq: Evidence from Iraqi financial markets. Eric Chaney, 2008, Paper. “At the end of January, 2006 the Iraqi government issued roughly $2.7 billion of debt in exchange for over $20 billion of Saddam-era commercial claims. This paper uses variation in the yield spread of this sovereign debt to evaluate pacification policy in Iraq. Structural change models are run in conjunction with conventional event study analysis. Results detail a mixed market reaction towards pacification policies implemented through August, 2006…” May require purchase or user account. Link

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The Optimal Taxation of Height: A Case Study of Utilitarian Income Redistribution

The Optimal Taxation of Height: A Case Study of Utilitarian Income Redistribution. N. Gregory Mankiw, Matthew Weinzierl, December 2007, Paper. “Should the income tax system include a tax credit for short taxpayers and a tax surcharge for tall ones? This paper shows that the standard Utilitarian framework for tax policy analysis answers this question in the affirmative. Moreover, based on the empirical distribution of height and wages, the optimal height tax is substantial: a tall person earning $50,000 should pay about $4,500 more in taxes than a short person earning the same income. This result has…” Link

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The Valuation of Hidden Assets in Foreign Transactions: Why “Dark Matter” Matters

The Valuation of Hidden Assets in Foreign Transactions: Why “Dark Matter” Matters. Ricardo Hausmann, May 27, 2007, Paper. “This paper clarifies how the valuation of hidden assets—what we call “dark matter”—changes our assessment of the U.S. external imbalance. Dark matter assets are defined as the capitalized value of the return privilege obtained by U.S. assets. Because this return privilege has been steady over recent decades, it is likely to persist in the future or even to increase, as it becomes leveraged by…”  May require purchase or user account. Link

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Cyclical Budgetary Policy and Economic Growth: What Do We Learn from OECD Panel Data?

Cyclical Budgetary Policy and Economic Growth: What Do We Learn from OECD Panel Data? Philippe Aghion, 2007, Paper. “A common view among macroeconomists is that there is a decoupling between macroeconomic policy (e.g., budget deficit, taxation, money supply), which should primarily affect price and income stability and long-run economic growth, which, if anything, should depend only upon structural characteristics of the economy (property right enforcement, market structure, market mobility, and so forth)…” Link

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Why the US Current Account Deficit is Sustainable

Why the US Current Account Deficit is Sustainable. Ricardo Hausmann, May 27, 2006, Paper. “Over the last couple of years, the burgeoning of the US current account deficit, reaching $792 billion in 2005 alone, has led to significant concerns about the future of the United States and the possibility of a major global crisis. With a brief respite in 1991, it comes after twenty-four years of unbroken deficits, which have totalled over $5.2 trillion. According to some doomsayers, once the massive financing required to continue paying for such a widening gap dries up…” May require purchase or user account. Link

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