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http://hdl.handle.net/10419/44957
  

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dc.contributor.authorKliem, Martinen_US
dc.contributor.authorKriwoluzky, Alexanderen_US
dc.date.accessioned2011-02-04en_US
dc.date.accessioned2011-04-15T09:44:49Z-
dc.date.available2011-04-15T09:44:49Z-
dc.date.issued2010en_US
dc.identifier.isbn978-3-86558-671-1en_US
dc.identifier.urihttp://hdl.handle.net/10419/44957-
dc.description.abstractThis paper presents a procedure to determine policy feedback rules in dynamic stochastic general equilibrium (DSGE) models. We illustrate our approach with fiscal feedback rules for tax instruments in a standard medium-scale DSGE model. First, we approximate the optimal dynamic behavior of the economy using simple linear feedback rules. Then we calculate the elasticities of the model variables' moments with respect to the feedback coefficients. The feedback coefficients associated with the highest elasticities form the policy feedback rules to be estimated. Our results stress the importance of carefully modeled fiscal tax policy in two dimensions: (i) with respect to the dynamic responses of fiscal policy to exogenous shocks and (ii) with respect to the historical shock decomposition of fiscal policy.en_US
dc.language.isoengen_US
dc.publisherDt. Bundesbank Frankfurt, M.en_US
dc.relation.ispartofseriesDiscussion Paper Series 1: Economic Studies 2010,26en_US
dc.subject.jelE62en_US
dc.subject.jelH30en_US
dc.subject.jelC51en_US
dc.subject.ddc330en_US
dc.subject.keywordFiscal policyen_US
dc.subject.keywordBayesian model estimationen_US
dc.subject.keywordIdentificationen_US
dc.titleToward a Taylor rule for fiscal policyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn645261823en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:bubdp1:201026-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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