Short-run fiscal policy: Welfare, redistribution and aggregate effects in the short and long-run

Sagiri Kitao

研究成果: Article査読

8 被引用数 (Scopus)

抄録

This paper quantifies the effects of two short-run fiscal policies, a temporary tax-cut and rebate transfer, that are intended to stimulate economic activities. A reduction in income taxation provides immediate incentives to work and save more, raising aggregate output and consumption. A temporary rebate is mostly saved and increases consumption marginally. Both policies improve the overall welfare of households and the rebate policy benefits especially low-income households. In the long-run, however, the debt accumulated to finance the stimulus and a higher tax to service the debt can crowd out capital and lower output and consumption, causing welfare to deteriorate.

本文言語English
ページ(範囲)2109-2125
ページ数17
ジャーナルJournal of Economic Dynamics and Control
34
10
DOI
出版ステータスPublished - 2010 10

ASJC Scopus subject areas

  • 経済学、計量経済学
  • 制御と最適化
  • 応用数学

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