| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w29149 |
| 来源ID | Working Paper 29149 |
| Procyclical Fiscal Policy and Asset Market Incompleteness | |
| Andrés Fernández; Daniel Guzman; Ruy E. Lama; Carlos A. Vegh | |
| 发表日期 | 2021-08-16 |
| 出版年 | 2021 |
| 语种 | 英语 |
| 摘要 | To explain the fact that government spending and tax policy are procyclical in emerging and developing countries, we develop a model for the joint behavior of optimal tax rates and government spending over the business cycle. Our set-up relies on financial frictions, which have been shown to be critical features of emerging markets, captured by various degrees of asset market incompleteness as well as varying levels of debt-elastic interest rate spreads. We first uncover a novel theoretical result within a simple static framework: incomplete markets can account for procyclical government spending but not necessarily procyclical tax policy. Explaining procyclical tax policy also requires that the ratio of private to public consumption comoves positively with the business cycle, which leads to larger fluctuations in the tax base. We then show that the procyclicality of tax policy holds in a more realistic DSGE model calibrated to emerging markets. Finally, we illustrate how larger financial frictions, which amplify the business cycle through more procyclical fiscal policies, have sizeable Lucas-type welfare costs. |
| 主题 | International Economics ; International Macroeconomics ; Public Economics ; Taxation |
| URL | https://www.nber.org/papers/w29149 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/586822 |
| 推荐引用方式 GB/T 7714 | Andrés Fernández,Daniel Guzman,Ruy E. Lama,et al. Procyclical Fiscal Policy and Asset Market Incompleteness. 2021. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w29149.pdf（988KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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