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dc.contributor.authorMalley, Jimen_US
dc.contributor.authorPhilippopoulos, Apostolisen_US
dc.contributor.authorWoitek, Ulrichen_US
dc.date.accessioned2007-07-23en_US
dc.date.accessioned2009-07-28T08:14:16Z-
dc.date.available2009-07-28T08:14:16Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/25964-
dc.description.abstractThis paper develops a dynamic stochastic general equilibrium model to examine the quantitative macroeconomic implications of countercyclical fiscal policy for France, Germany and the UK. The model incorporates real wage rigidity which is the particular market failure justifying policy intervention. We subject the model to productivity shocks and use either government consumption or investment to react to the output gap or the public debt-to-output ratio. If the object of fiscal policy is purely to stabilize output or debt volatility, then our results suggest substantial reductions can be obtained, especially with respect to output. In stark contrast, however, a formal general equilibrium welfare assessment of the volatility implications of these alternative instrument/target combinations reveals the welfare gains from active policy, measured as a share of consumption, to be very modest.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 1919en_US
dc.subject.jelE6en_US
dc.subject.jelH5en_US
dc.subject.ddc330en_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwKonjunkturpolitiken_US
dc.subject.stwÖffentliche Schuldenen_US
dc.subject.stwVolatilitäten_US
dc.subject.stwWirtschaftspolitische Wirkungsanalyseen_US
dc.subject.stwTheorieen_US
dc.subject.stwFrankreichen_US
dc.subject.stwDeutschlanden_US
dc.subject.stwGroßbritannienen_US
dc.titleTo react or not?: fiscal policy, volatility and welfare in the EU-3en_US
dc.typeWorking Paperen_US
dc.identifier.ppn538031980en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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