Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/224097
Authors: 
Horváth, Roman
Kaszab, Lóránt
Marsal, Ales
Year of Publication: 
2019
Series/Report no.: 
MNB Working Papers 2019/2
Abstract: 
We estimate a New Keynesian model on post-war US data with generalised method of moments using either constant or time- varying debt and labor income taxes. We show that accounting for government debt and distortionary taxes help the New Keynesian model match the level of the nominal term premium with a lower relative risk-aversion than typically found in the literature.
Subjects: 
zero-coupon bond
nominal term premium
balanced budget rule
government debt
income taxation
JEL: 
E13
E31
E43
E44
E62
Document Type: 
Working Paper

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