When Does Government Debt Crowd Out Investment? Traum, Nora; Yang, Shu-Chun S.
Journal of applied econometrics (Chichester, England),
January/February 2015, Letnik:
30, Številka:
1
Journal Article
Recenzirano
Odprti dostop
We examine when government debt crowds out investment for the US economy using an estimated New Keynesian model with detailed fiscal specifications and accounting for monetary and fiscal policy ...interactions. Whether investment is crowded in or out in the short termdepends on policy shocks triggering debt expansions: higher debt can crowd in investment for cutting capital tax rates or increasing government investment. Contrary to the conventional view, no systematic relationships between real interest rates and investment exist, explaining why reduced-form regressions are inconclusive about crowding out. At longer horizons, distortionary financing is important for the negative investment response to debt.
Despite the voluminous literature on fiscal policy, very few papers focus on low-income countries (LICs). This paper develops a New Keynesian small open economy model to show, analytically and ...numerically, that several prevalent features of LICs—dependence on external financing, public investment inefficiency, and a low degree of home bias in public investment—play important roles in government spending effects. External financing increases the resource envelope, mitigating the crowding out effects, but it tends to appreciate the real exchange rate, lowering traded output. Although capital scarcity in LICs implies high returns to public capital, low marginal investment efficiency can substantially dampen the output multiplier. Also, public investment may not be effective in stimulating output in the short run, as LICs often rely on imports to a large extent to carry out public investment projects, weakening its role as a short-run demand stimulus.
•We use a DSGE model to study government spending effects in low-income countries.•External financing tends to have a bigger multiplier than domestic financing.•External financing increases resources available, mitigating crowding out effects.•Low marginal investment efficiency substantially dampens the output multiplier.•Low home-bias degrees in public investment weaken its short-run stimulus effect.
This article presents a deep learning scheme for automatic defect detection in material surfaces. The success of deep learning model training is generally determined by the number of representative ...training samples and the quality of the annotation. It is extremely tedious and tiresome to annotate defects pixel-by-pixel in an image to train a semantic network model for defect segmentation. In this study, we propose a two-stage deep learning scheme to tackle the pixel-wise defect detection in textured surfaces without manual annotation. The first stage of the deep learning scheme uses two cycle-consistent adversarial network (CycleGAN) models to automatically synthesize and annotate defect pixels in an image. The synthesized defect images and their corresponding annotated results from the CycleGAN models are then used as the input-output pairs for training the U-Net semantic network. The proposed scheme requires only a few real defect samples for the training and completely requires no manual annotation work. It is practical and computationally very efficient for the implementation in manufacturing. Experimental results show that the proposed deep learning scheme can be applied for defect detection in a variety of textured and patterned surfaces, and results in high detection accuracy.
Using the post-WWII data of U.S. federal corporate income tax changes, within a Smooth Transition VAR, this paper finds that the output effect of capital income tax cuts is government debt-dependent: ...it is less expansionary when debt is high than when it is low. To explore the mechanisms that can drive this fiscal state-dependent tax effect, the paper uses a DSGE model with regime-switching fiscal policy and finds that a capital income tax cut is stimulative to the extent that it is unlikely to result in a future fiscal adjustment. As government debt increases to a sufficiently high level, the probability of future fiscal adjustments starts rising, and the expansionary effects of a capital income tax cut can diminish substantially, whether the expected adjustments are through a policy reversal or a consumption tax increase. Also, a capital income tax cut need not always have large revenue feedback effects as suggested in the literature.
The main roles of fault detection and diagnosis (FDD) for industrial processes are to make an effective indicator which can identify faulty status of a process and then to take a proper action ...against a future failure or unfavorable accidents. In order to enhance many process performances (e.g., quality and throughput), FDD has attracted great attention from various industrial sectors. Many traditional FDD techniques have been developed for checking the existence of a trend or pattern in the process or whether a certain process variable behaves normally or not. However, they might fail to produce several hidden characteristics of the process or fail to discover the faults in processes due to underlying process dynamics. In this paper, we present current research and developments of FDD approaches for process monitoring as well as a broad literature review of many useful FDD approaches.
•Behavior of FRP-to-concrete interface degraded after salt solution wet-dry cycles.•Debonding load was derived based on the degradation of FRP-to-concrete interface.•Stiffness of FRP-to-concrete ...interface degraded obviously.•Durability of BFRP-to-concrete interface was weaker than that of CFRP.
The strengthening of concrete structures with externally bonded fiber reinforced polymer (FRP) was increasingly being used in marine exposure environments. Marine environment exposure may significantly affect the bonding behavior of FRP externally bonded to concrete. This paper is intended for studying the effect of tidal-like condition such as salt solution wet-dry cycling on the behavior of FRP-concrete interface. Exposure tests and analytical approach are carried out on specimens externally bonded with carbon fiber reinforce polymer (CFRP) and basalt fiber-reinforce polymer (BFRP). Test variable include the types of fiber and the environmental exposure periods (0, 90, 180, 270, 360 cycles). From the bending test results, the bilinear bond stress-slip relationships for different exposure periods are derived. Based on these bond stress-slip relationships, the full-range behavior of shear stress along the bond length and debonding load can be obtained through the analytical solution. The test and numerical results show that salt solution wet-dry cycling can greatly affect the bond behavior of CFRP-concrete and BFRP-concrete interface with the increase of exposure periods. With the increase of exposure periods, the position of maximum shear stress tend to move backward, which indicates the behavior of FRP-concrete interface is weakened due to the salt solution wet-dry cycling. Compared with CFRP-concrete interface, salt solution wet-dry cycling exposure has greater influence on the bond behavior of the BFRP-concrete interface.
Fiscal Consolidation and Public Wages CHANG, JUIN‐JEN; LIN, HSIEH‐YU; TRAUM, NORA ...
Journal of money, credit and banking,
March-April 2021, Letnik:
53, Številka:
2-3
Journal Article
Recenzirano
Odprti dostop
A New Keynesian model with government production, public compensation, and unemployment is fit to U.S. data to study the effects of public wage reductions. Estimation implies reductions in public ...wages and government goods purchases have similar effects on total output, and the fiscal balance, yet the former can raise private output slightly, while the latter does not. Exogenous public wage reductions decrease private wages. Model counterfactuals show that sufficiently rigid nominal private wages can reverse the private wage response, as the rigidity dampens the labor reallocation effect from the public to private sector that exerts downward pressure on private wages.
In this paper, a free energy-based surface tension force (FESF) model is presented for accurately resolving the surface tension force in numerical simulation of multiphase flows by the level set ...method. By using the analytical form of order parameter along the normal direction to the interface in the phase-field method and the free energy principle, FESF model offers an explicit and analytical formulation for the surface tension force. The only variable in this formulation is the normal distance to the interface, which can be substituted by the distance function solved by the level set method. On one hand, as compared to conventional continuum surface force (CSF) model in the level set method, FESF model introduces no regularized delta function, due to which it suffers less from numerical diffusions and performs better in mass conservation. On the other hand, as compared to the phase field surface tension force (PFSF) model, the evaluation of surface tension force in FESF model is based on an analytical approach rather than numerical approximations of spatial derivatives. Therefore, better numerical stability and higher accuracy can be expected. Various numerical examples are tested to validate the robustness of the proposed FESF model. It turns out that FESF model performs better than CSF model and PFSF model in terms of accuracy, stability, convergence speed and mass conservation. It is also shown in numerical tests that FESF model can effectively simulate problems with high density/viscosity ratio, high Reynolds number and severe topological interfacial changes.
•A free energy-based surface tension force (FESF) model is proposed for simulation of multiphase flows by level set method.•The proposed model computes the surface tension force by an explicit form.•The proposed model outperforms the existing models in terms of accuracy, stability, convergence speed and mass conservation.•The proposed model can effectively simulate multiphase flows.
•The computer recycling behavior in Taiwan is investigated.•This study developed a system dynamics model for characterizing computer recycling behavior in Taiwan.•Three dynamic hypotheses are ...included in the proposed model and validated by using real recycling data.•With the moving average forecast method, the proposed model is used to predict future recycling quantities.
Environmental pollution becomes aggravated as human beings enjoy high-tech products without being fully aware of the consequences of excessive resource consumption. In the literature, few studies focus on people’s recycling behavior. How to characterize recycling behavior appropriately poses a critical challenge in the study of electronic waste recycling. This paper develops a computer recycling model using system dynamics to predict electronic waste in Taiwan. The model is constructed and validated for “real” recycling data from the Taiwan Environmental Protection Administration. The constructed model is well qualified for the computer recycling data with only 2 percent forecast error. The three decision variables of holding duration, recycling refund and innovative technology were tested through dynamic hypotheses and found significant to be included in the proposed system dynamics model. A moving average forecast method is employed to predict future recycling quantities. The research outcomes can help the Government gain an understanding of the recycling behavior of electronic waste. Therefore, practical and feasible policies can be proposed to improve electronic waste recycling.
PDF
