Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/38820 
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dc.contributor.authorMayer, Ericen
dc.contributor.authorGrimm, Oliveren
dc.date.accessioned2008-10-30-
dc.date.accessioned2010-08-17T12:38:49Z-
dc.date.available2010-08-17T12:38:49Z-
dc.date.issued2008-
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
dc.language.isoengen
dc.publisher|aUniversity of Würzburg, Department of Economics |cWürzburgen
dc.relation.ispartofseries|aW.E.P. - Würzburg Economic Papers |x78en
dc.subject.jelE32en
dc.subject.jelE61en
dc.subject.jelE62en
dc.subject.ddc330en
dc.subject.keywordCountercyclical fiscal policyen
dc.subject.keywordwelfare costsen
dc.subject.keywordnominal rigiditiesen
dc.subject.stwAntizyklische Finanzpolitiken
dc.subject.stwSoziale Kostenen
dc.subject.stwWohlfahrtseffekten
dc.subject.stwPreisspanneen
dc.subject.stwDynamisches Gleichgewichten
dc.subject.stwUngleichgewichtstheorieen
dc.subject.stwTheorieen
dc.titleCountercyclical taxation and price dispersion-
dc.type|aWorking Paperen
dc.identifier.ppn583986528en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:wuewep:78en

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