Suchergebnisse

This paper studies the optimal behavior of a democratic government in its use of fiscal policies to redistribute income. I present a stochastic dynamic general equilibrium model with heterogeneous agents to analyze (1) the differences between the effects on the optimal tax rate of permanent and nonpermanent perturbations and (2) the relationship between initial inequality and both steady-state levy and income distribution. In addition, the optimal fiscal policy for the transition is calculated. The analysis leads me to three main conclusions. First, there are no important differences between how taxes respond to a permanent or nonpermanent perturbation. Second, the initial inequality has a huge effect on both actual levy and actual income distribution. And finally, the Chari, Christiano, and Kehoe (1992) result, i.e., taxes on labor are roughly constant over the business cycle, holds only if the productivity ratio is constant. In addition, the model implies a positive correlation between inequality and tax rate, just as in the basic literature.

The aim of the research is: to evaluate the fiscal policy in Latvia in accordance with the theoretical and practical conclusions of scientific investigations in the world, to determine the main fiscal risks and to find fiscal policy gaps in national government budgeting as well as in the use of funds and to define recommendations for making a sustainable fiscal policy in the country. At present, economic development in the world and Europe, the geopolitical situation, the migration of the population as well as the domestic problems of the development of Latvia pose new challenges to the government's fiscal policy; they create new fiscal risks and problems that require strong fiscal discipline and an efficient fiscal policy. The fact that Latvia did not have fiscal reserve resources for easier survival of the crisis is a severe and painful lesson about the errors in the fiscal policy. New circumstances that have occurred recently have to be taken into account by the policy makers. In order to build an effective fiscal policy, the following has to be found out: the most important factors of impact, whether they are of objective or subjective nature, and what fiscal risks may threaten the performance of individual fiscal indicators, and how big must be the fiscal security reserve.

While the ECB helped mitigate the euro crisis in the aftermath of Lehman, it has stretched its monetary mandate and moved into fiscal territory. This text describes and summarizes the crucial role played by the ECB in the intervention spiral resulting from its bid to manage the crisis. It also outlines ongoing competitiveness problems in southern Europe, discusses the so-called austerity policy of the Troika, comments on QE and presents two alternative paths for the future development of Europe.

This book aims to empirically and theoretically study how income inequality and demographic change affected fiscal policy and subsequent economic growth globally in the past decades from four perspectives. First, it briefly reviews the dynamic changes of income sources that contribute to inequality. Second, it distinguishes between income inequality induced by differences in labor productivity and income inequality induced by differences in capital income. Third, it briefly reviews the dynamic changes of tax composition in the age of demographic change. Last, it discusses the impacts of changes in age structure on the extent of taxes on income relative to expenditure. This book offers a comprehensive discussion to understand and analyze the reason, performance and challenge of fiscal policy and economic growth from the perspective of inequality and demographics. In addition to students, teachers and researchers in the areas of equity, demography, political economy and economic policy, this book is also of great interest to policy makers, planners and non-government agencies who are concerned with understanding and addressing poverty-related and aging-related issues in developed and developing countries.

In providing an analysis of post-European Monetary Union fiscal policy, this forum focuses on the EMU's role in the political economy of fiscal policy making. It then turns to a discussion of the causes of fiscal stress that confront many of the European Union countries in the face of EMU implementation, eg, demographic change, an aging population, immigration, & the effects of a social welfare system. 23 References. K. Larsen