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Uhlig, Harald
The American economic review, 05/2010, Letnik: 100, Številka: 2Journal Article
This paper calculates fiscal multipliers in a baseline neoclassical growth model with endogenous labor supply and fiscal policy, allowing for government spending transfers, government debt, and distortionary taxes on labor and capital income. The policy experiments are conducted holding transfers, consumption taxes, and capital income fixed, i.e., changes in taxation require changes in distortionary labor tax. This paper argues that short run fiscal multipliers can be dramatically misleading. Typical fiscal stimulus debates concentrate on output effects and not on the consequences for overall welfare. This paper follows that practice. The results point to potentially drastic long term consequences of fiscal stimuli. These long term consequences ought to receive more and sufficient attention in the debates. Without their discussion, these debates appear to be severely incomplete.
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Leto | Faktor vpliva | Izdaja | Kategorija | Razvrstitev | ||||
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JCR | SNIP | JCR | SNIP | JCR | SNIP | JCR | SNIP |
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in: SICRIS
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