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dc.contributor.authorMayer, Ericen_US
dc.contributor.authorGrimm, Oliveren_US
dc.date.accessioned2008-10-30en_US
dc.date.accessioned2010-08-17T12:38:49Z-
dc.date.available2010-08-17T12:38:49Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/38820-
dc.description.abstractIn this paper, we explore the benefits from a supply-side oriented fiscal tax policy within the framework of a New Keynesian DSGE model. We show that countercyclical tax rules, which are contingent on the observed welfare gap or on the cost-push shock and levied on value added, remarkably reduce the adverse impact of cost-push shocks on welfare. We state that the tax rule establishes a path for the evolution of marginal cost at the firm level that largely prevents built up of price dispersion. We highlight that this tax policy is also effective under a balancedbudget regime. Hence, fiscal policy can disencumber monetary policy in the light of cost-push shocks.en_US
dc.language.isoengen_US
dc.publisherUniv., Lehrstuhl für VWL 1 Würzburgen_US
dc.relation.ispartofseriesWürzburg economic papers 78en_US
dc.subject.jelE32en_US
dc.subject.jelE61en_US
dc.subject.jelE62en_US
dc.subject.ddc330en_US
dc.subject.keywordCountercyclical fiscal policyen_US
dc.subject.keywordwelfare costsen_US
dc.subject.keywordnominal rigiditiesen_US
dc.subject.stwAntizyklische Finanzpolitiken_US
dc.subject.stwSoziale Kostenen_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwPreisspanneen_US
dc.subject.stwDynamisches Gleichgewichten_US
dc.subject.stwUngleichgewichtstheorieen_US
dc.subject.stwTheorieen_US
dc.titleCountercyclical taxation and price dispersionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn583986528en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:wuewep:78-
Appears in Collections:W.E.P. - Würzburg Economic Papers, Lst. f. VWL, Geld u. internat. Wirtschaftsbeziehungen, Universität Würzburg

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