Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5053984 | Economic Modelling | 2015 | 14 Pages |
Abstract
We study optimized monetary and fiscal feedback policy rules. The setup is a New Keynesian DSGE model of a closed economy which is solved numerically using common parameter values and fiscal data from the Euro area. Our aim is to welfare rank alternative tax-spending policy instruments used for shock stabilization and debt consolidation when, at the same time, the monetary authorities can follow a Taylor rule for the nominal interest rate.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Apostolis Philippopoulos, Petros Varthalitis, Vanghelis Vassilatos,