Does fiscal policy matter? Tax, transfer, and spend in a macro ABM with capital and credit

Tiziana Assenza, Domenico Delli Gatti, Paola Colzani, Jakob Grazzini

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

3 Citazioni (Scopus)

Abstract

We investigate, compare, and contrast the emerging properties of a macroeconomic agent-based model along the lines of Assenza et al., (2015, Journal of Economic Dynamics and Control, 50, 5–28) when the government experiments with different policy configurations: (i) tax and transfer; (ii) tax, transfer, and spend; and (iii) the implementation of a fiscal rule, such as a stylized Stability and Growth Pact. In some of the scenarios considered, a remarkable property can be detected, which we label the balanced budget emerging property: The scale of activity in the aggregate (GDP, employment, and unemployment rate) is such that a balanced budget emerges spontaneously. The strong implication of this property is that the fiscal authority is able to target GDP and the unemployment rate, a result reminiscent of the Blinder–Solow framework. It is worth noting, however, that there are many departures from the rule, which we have detected by carrying out the sensitivity analysis.
Lingua originaleEnglish
pagine (da-a)N/A-N/A
RivistaIndustrial and Corporate Change
DOI
Stato di pubblicazionePubblicato - 2018

Keywords

  • Agent-based models
  • Fiscal policy

Fingerprint

Entra nei temi di ricerca di 'Does fiscal policy matter? Tax, transfer, and spend in a macro ABM with capital and credit'. Insieme formano una fingerprint unica.

Cita questo