[PDF] Essays On Optimal Policy And Macroeconomics eBook

Author : Boris Chafwehé
Publisher : Presses universitaires de Louvain
Page : 238 pages
File Size : 22,64 MB
Release : 2021-04-01
Category : Business & Economics
ISBN : 9782390611202

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This thesis contributes to modern macroeconomic theory. It is composed of three chapters that investigate the role of household heterogeneity and the design of monetary and fiscal policies in shaping macroeconomic outcomes. The first chapter studies the link between labour market risks and equilibrium in the market for durable goods. It develops a quantitative model in which households optimally choose nondurable consumption, the accumulation of durable goods, and holdings of financial assets. The model is used to show that, when unemployment risk increases, precautionary savings motives and the implied portfolio rebalancing towards liquid assets lead to decreases in the resale price of durables, a feature that is consistent with empirical observations. The second chapter investigates the properties of optimal taxes and transfers in a framework where household heterogeneity is explicitly accounted for. We describe how the introduction of heterogeneity alters the prescriptions of the model when compared to its representative agent counterpart. We also propose an empirical application of the theory to show that heterogeneity brings the model predictions closer to their counterpart in the data. The third chapter proposes a framework of optimal monetary policy in the case where government debt sustainability may be a constraint for the central bank. In the case where optimal policy exhibits «debt concerns» monetary policy becomes subservient to fiscal policy, and needs to partially give up on the objective of stabilizing inflation and the output gap. We link our results to the ones obtained in the literature on monetary and fiscal policy interactions, in which policies are usually summarized by exogenous feedback-rules. Applications of our theory to concrete policy scenarios are also provided.

Author : William C. Brainard
Publisher : MIT Press
Page : 392 pages
File Size : 44,9 MB
Release : 1991
Category : Business & Economics
ISBN : 9780262023252

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These original contributions celebrate and extend Tobin's contributions to macroeconomics, international economics, finance, and economic policy.

Author : François Courtoy
Publisher : Presses universitaires de Louvain
Page : 0 pages
File Size : 47,70 MB
Release : 2022-08-04
Category : Business & Economics
ISBN : 9782390612391

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This thesis contributes to two fields of macroeconomics. The first two chapters contribute to the literature that investigates the role of household heterogeneity, in terms of marginal propensity to consume and labor income, for the 'optimal' design of fiscal policies. The first chapter explores how the introduction of household heterogeneity alters the prescriptions derived from the standard optimal fiscal policy framework that only accounts for a representative agent. When heterogeneity is accounted for the government uses taxation and transfers as a redistributing device that only partially corrects for fluctuations in income inequality. The second chapter builds on the results of the first. It develops a quantitative model that is estimated with US data on income and consumption dispersion among households. The model is then used to assess the relevance of the actual US fiscal policy. Unexpectedly, it concludes that the US fiscal policy is close to optimal. The third chapter contributes to the literature that is at the crossroad of the fields of history of macroeconomics and of macroeconomic pedagogy. It aims at reflecting on the theory used in the first two chapters of the thesis and in the teaching of macroeconomics. It identifies and discuss the deep methodological discrepancy between the theory used in research and graduate macroeconomics courses, on the one hand, and in undergraduate macroeconomic courses, in the other hand.

Author : K. Vela Velupillai
Publisher : Routledge
Page : 328 pages
File Size : 16,31 MB
Release : 2004-04-22
Category : Business & Economics
ISBN : 1134358717

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Jean-Paul Fitoussi needs no introduction as one of the world's foremost Macroeconomists of his generation. This celebration of his work includes contributions from Nobel Prize - winning economists Robert W. Clower and Robert Solow as well as Olivier Blanchard and leading economic theorist, Edmond Malinvaud.

Author : Kenneth K. Kurihara
Publisher : SUNY Press
Page : 168 pages
File Size : 22,80 MB
Release : 1972-01-01
Category : Business & Economics
ISBN : 9780873951364

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This collection of essays is concerned with the behavioral and structural problems of growing advanced economies. Can these economies achieve and maintain stable growth without inflation, unemployment and balance of payments difficulties?

Author : Xuan Liu
Publisher :
Page : 174 pages
File Size : 36,45 MB
Release : 2007
Category :
ISBN : 9781109937282

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This dissertation consists of two essays in international macroeconomics. The first essay shows that optimal fiscal and monetary policy is time consistent in a standard small open economy. Further, there exist many maturity structures of public debt capable of rendering the optimal policy time consistent. This result is in sharp contrast with that obtained in the context of closed-economy models. In the closed economy, the time consistency of optimal monetary and fiscal policy imposes severe restrictions on public debt in the form of a unique term structure of public debt that governments can leave to their successors at each point in time. The time consistent result is robust: optimal policy is time consistent when both real and nominal bonds have finite horizons. While in a closed economy, governments must have both nominal and real bonds, and have at least real bonds over an infinite horizon to render optimal policy time consistent.