Author: Michael SampsonPublisher:
ISBN:
Category :
Languages : en
Pages : 29
Book Description
The Welfare Implications of Uncertain Growth Rates for Stabilization Policy
Author: Michael SampsonThe Welfare Implications of Uncertain Growth Rates for Stablilization Policies
Author: Michael SampsonPublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 29
Book Description
The Welfare Implications of Parameter Uncertainty for Stabilization Policy
Author: Michael SampsonThe Welfare Implications of Parameter Uncertainity for Stabilization Policy
Author: Concordia University (Montréal, Québec). Department of EconomicsPublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 44
Book Description
Fiscal Policy, Stabilization, and Growth
Author: Guillermo E. PerryPublisher: World Bank Publications
ISBN: 0821370855
Category : Business & Economics
Languages : en
Pages : 354
Book Description
Fiscal policy in Latin America has been guided primarily by short-term liquidity targets whose observance was taken as the main exponent of fiscal prudence, with attention focused almost exclusively on the levels of public debt and the cash deficit. Very little attention was paid to the effects of fiscal policy on growth and on macroeconomic volatility over the cycle. Important issues such as the composition of public expenditures (and its effects on growth), the ability of fiscal policy to stabilize cyclical fluctuations, and the currency composition of public debt were largely neglected. As a result, fiscal policy has often amplified cyclical volatility and dampened growth. 'Fiscal Policy, Stabilization, and Growth' explores the conduct of fiscal policy in Latin America and its consequences for macroeconomic stability and long-term growth. In particular, the book highlights the procyclical and anti-investment biases embedded in the region's fiscal policies, explores their causes and macroeconomic consequences, and asesses their possible solutions.
Volatility, Growth, and Large Welfare Gains from Stabilization Policies
Author: Pengfei WangPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
"This paper proposes a simple endogenous-fluctuations growth model to show: (1) long-run growth and short-run fluctuations can be intimately linked; in particular, the rate of long run growth can be negatively affected by volatilities; (2) imperfect competition can cause endogenous fluctuations, and it reduces not only the level of output but also its mean growth rate by amplifying the volatility of the economy; and (3) the welfare gain of stabilization policy can be enormous (e.g., as high as 25% of annual consumption when calibrated to the U.S. data) because policies designed to reduce sunspots-driven fluctuations can generate permanently higher rates of growth"--Federal Reserve Bank of St. Louis web site.
Macroeconomic Theory and Stabilization Policy
Author: Willem H. BuiterPublisher: University of Michigan Press
ISBN: 9780472101382
Category : Economic development
Languages : en
Pages : 392
Book Description
Brings together Buiter's major papers on macroeconomic theory and policy
Some Welfare Implications of Optimal Stabilization Policy in an Economy with Capital and Sticky Prices
Author: Welfare, Stabilization, Or Growth
Author: Steven P. CassouPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper investigates a variety of objectives that are commonly used to motivate government fiscal action. These include welfare maximization, stabilization and growth maximization. The policies are compared on the basis of their implications for welfare, volatility and growth. We show that stabilization policies can produce welfare levels that are nearly identical to those of welfare maximization policies and that both welfare maximization and stabilization policies yield large welfare gains and modest growth losses relative to growth maximization policies. We also show that there are side issues to stabilization polices. In particular: 1) It is not possible to stabilize all macroeconomic variables simultaneously, even when the number of policy instruments is equal to the number of shocks; 2) stabilizing a particular variable requires increased volatility of some other variable; 3) stabilization requires some flexibility regarding the government's budget constraint; and 4) stabilization requires the government to respond in a precise and immediate way to exogenous shocks which hit the economy.
Robustness
Author: Lars Peter HansenPublisher: Princeton University Press
ISBN: 0691170975
Category : Business & Economics
Languages : en
Pages : 453
Book Description
The standard theory of decision making under uncertainty advises the decision maker to form a statistical model linking outcomes to decisions and then to choose the optimal distribution of outcomes. This assumes that the decision maker trusts the model completely. But what should a decision maker do if the model cannot be trusted? Lars Hansen and Thomas Sargent, two leading macroeconomists, push the field forward as they set about answering this question. They adapt robust control techniques and apply them to economics. By using this theory to let decision makers acknowledge misspecification in economic modeling, the authors develop applications to a variety of problems in dynamic macroeconomics. Technical, rigorous, and self-contained, this book will be useful for macroeconomists who seek to improve the robustness of decision-making processes.