Found 495 article(s) in category 'Fiscal Policy'

Redistribution Without a Median Voter: Models of Multidimensional Politics

Redistribution Without a Median Voter: Models of Multidimensional Politics. Torben Iversen, May 2018, Paper, “Most work on redistribution in democracies is anchored in long-standing unidimensional models, notably the seminal Meltzer-Richard-Romer model. When scholars venture outside the security of unidimensionality, many either abandon theoretical rigor or miss the full consequences of adding more dimensions (whether ideological or economic). There is now a substantial literature on redistributive politics in multidimensional policy spaces, but it tends to be very technical and frequently misinterpreted, if not ignored. This purpose of this article is to review this relatively new literature using simple graphical representations,Link

Tags: , , , , , , , , , ,

The boom in Puerto Rican debt has nothing to do with reality

The boom in Puerto Rican debt has nothing to do with reality. Lawrence Summers, April 17, 2018, Opinion, “Desmond Lachman, Brad Setser and Antonio Weiss have written a very strong analysis of the Puerto Rico situation. If ever there was a disconnect between underlying reality and what is happening in financial markets, it is the boom in Puerto Rican debt that has nearly doubled the value of some of its debt securities during the past few months.” Link

Tags: , , , , , ,

A debt crisis is coming. But don’t blame entitlements

A debt crisis is coming. But don’t blame entitlements. Jason Furman, April 6, 2018, Opinion, “Martin Neil Baily, Jason Furman, Alan B. Krueger, Laura D’Andrea Tyson and Janet L. Yellen are all former chairs of the White House Council of Economic Advisers. The U.S. unemployment rate is down to 4.1 percent, and economic growth could well increase in 2018. Consumer and business confidence is high. What could go wrong?Link

Tags: , , , , ,

Taxes for health: evidence clears the air

Taxes for health: evidence clears the air. Lawrence Summers, April 5, 2018, Opinion, “Although this argument may look appealing, clear thinking combined with good evidence reveals its many fallacies. An ethical judgment about taxing harmful products cannot rely on the question of tax regressivity alone. Rather, it requires consideration of all the effects, including the associated health…Link

Tags: , , , , ,

Climbing out of Debt

Climbing out of Debt. Alberto Alesina, March 2018, Paper, “Almost a decade after the onset of the global financial crisis, national debt in advanced economies remains near its highest level since World War II, averaging 104 percent of GDP. In Japan, the ratio is 240 percent and in Greece almost 185 percent. In Italy and Portugal, debt exceeds 120 percent of GDP.” Link

Tags: , , , , , , ,

Saving the heartland: Place-based policies in 21st Century America

Saving the heartland: Place-based policies in 21st Century America. Edward Glaeser, Lawrence Summers, March 8, 2018, Paper, “America’s regional disparities are large and regional convergence has declined if not disappeared. This wildly uneven economic landscape calls for a new look at spatially targeted policies. There are three plausible justifications for place-based policies–agglomeration economies, spatial equity and larger marginal returns to targeting social distress in high distress areas. The second justification is stronger than the first and the third justification is stronger than the second. The enormous social costs of non-employment suggests that fighting long-term joblessness is more important than fighting income inequality. Stronger tools, such as spatially targeted employment credits, may be needed in West Virginia than in San Francisco.Link

Tags: , , , , , , ,

Reagan’s Cure for America’s Debt Disease

Reagan’s Cure for America’s Debt Disease. Martin Feldstein, March 5, 2018, Opinion, “The federal government’s most urgent domestic challenge is the exploding debt and deficit. America’s debt nearly doubled during the Obama years, reaching 76% of gross domestic product in 2017. If nothing is done it will surpass 100% of GDP within a decade. The U.S. will then have one of the highest debt ratios in the industrial world—topped only by countries like Greece, Italy and Japan.Link

Tags: , , ,

Summers Warns Next U.S. Recession Could Outlast Previous One

Summers Warns Next U.S. Recession Could Outlast Previous One. Lawrence Summers, February 28, 2018, Video, “The next U.S. recession could drag on longer than the last one that stretched 18 months. That’s the assessment of former Treasury Secretary Larry Summers. With the economy in its ninth year of expansion, even if one were to take a hawkish view of upcoming Federal Reserve tightening, it would be some time before the level of interest rates rates gets high enough to allow them to again be reduced by the 500 basis points typical for a U.S. recession, Summers said at a conference in Abu Dhabi.” Link

Tags: , , , ,

What Is The US Health Spending Problem?

What Is The US Health Spending Problem? David Cutler, February 14, 2018, Paper, “Is increased spending on medical care harmful to the US economy? The overall share of the gross domestic product spent on medical care is not a problem, provided that the services bought are worth more than their cost. However, high and rising costs expose two often-overlooked problems. First, spending is too high because many dollars are wasted. Estimates suggest that unnecessary medical spending costs the typical American family thousands of dollars each year.Link

Tags: , , , ,