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Simulating U.S. Tax Reform
Authors: --- --- --- --- --- et al.
Year: 1997 Publisher: Cambridge, Mass. National Bureau of Economic Research

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This paper uses a new large-scale dynamic simulation model to compare the equity, efficiency, and macroeconomic effects of five alternative to the current U.S. federal income tax. These reforms are a proportional income tax, a proportional consumption tax, a flat tax, a flat tax with transition relief, and a progressive variant of the flat tax called the 'X tax.' The model incorporates intragenerational heterogeneity and kinked budget constraints. It predicts major macroeconomic gains (including an 11 percent increase in long-run output) from replacing the federal tax system with a proportional consumption tax. Future middle- and upper-income classes gain from this policy, but initial older generations are hurt by the policy's implicit capital levy. Poor members of current and future generations also lose. The The flat tax, which adds a standard deduction to the consumption tax, makes all members of future generations better off, but at a cost of halving the economy's long-run output gain and harming initial older generations. Insulating these older generations through transition relief further reduces transition relief further reduces the long-run gains from tax reform. Switching to a proportional income tax without deductions and exemptions hurts current and future low lifetime earners, but helps everyone else. It also raises long-run output by over 5 percent. The X tax makes everyone better off in the long-run and also raises long-run output by 7.5 percent. But it harms initial older generations who bear its implicit wealth tax.

Dynamic macroeconomics : instability, fluctuation, and growth in monetary economics
Authors: --- ---
ISBN: 0262272814 0585133662 9780585133669 0262061910 9780262272810 Year: 1997 Publisher: Cambridge, Mass. : MIT Press,

Equilibrium and economic theory
Author:
ISBN: 0415142997 0203282248 041575691X 0203023234 1280067047 1134764375 9780203023235 9786610067046 661006704X 9780415142991 9781134764372 9781134764327 1134764324 9781134764365 1134764367 9780415756914 9781280067044 Year: 1997 Volume: 11 Publisher: London ; New York : Routledge,

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This book considers the treatment of equilibrium by several of the most important schools of thought in economics, including: * neoclassical economics, * the neo-Ricardian economics, * Post-Keynesian economics - both those who follow Joan Robinson in denying any interpretative role to equilibrium in economic theorizing and those who use the notion of equilibrium, but re-defined from a Classical or Keynesian perspective.

General equilibrium theory : an introduction
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ISBN: 0521564735 052156414X 1139174746 9780521564144 9780521564731 9781139174749 Year: 1997 Publisher: Cambridge : Cambridge University Press,

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General Equilibrium Theory: An Introduction treats the classic Arrow-Debreu general equilibrium model in a form accessible to graduate students and advanced undergraduates in economics and mathematics. Topics covered include mathematical preliminaries, households and firms, existence of general equilibrium, Pareto efficiency of general equilibrium, the First and Second Fundamental Theorems of Welfare Economics, the core and core convergences, future markets over time and contingent commodity markets under uncertainty. Demand, supply, and excess demand appear first as (point-valued) functions, then optionally as (set-valued) correspondences. The mathematics presented (with elementary proofs of the theorems) includes a real analysis, the Brouwer fixed point theorem, and separating and supporting hyperplane theorems. Optional chapters introduce the existence of equilibrium with set-valued supply and demand, the mathematics of upper and lower hemicontinuous correspondences, and the Kakutani fixed point theorem. The treatment emphasizes clarity and accessibility to the student through use of examples and intuition.

Dynamic macroeconomics : instability, fluctuations, and growth in monetary economies
Authors: ---
ISBN: 0262061910 9780262061919 Year: 1997 Publisher: Cambridge (Mass.): MIT press


Book
A Provincial View of Economic Integration
Authors: ---
ISBN: 1462303633 1452776520 1281961434 1451893299 9786613793621 Year: 1997 Publisher: Washington, D.C. : International Monetary Fund,

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This paper develops a method of testing levels of economic integration based upon consumption smoothing, and tests it using data on trade balances across Canadian provinces. The results indicate the provinces are highly integrated within Canada, but integration between Canada and the rest of the world is partial. Provincial trade balances respond only about half as much to events in the rest of the world as they do to events within Canada. In short, national borders appear to matter for intertemporal trade.


Book
Sources of Debt Accumulation in a Small Open Economy
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ISBN: 1462386202 1452727007 1282110888 9786613803764 1451901712 Year: 1997 Publisher: Washington, D.C. : International Monetary Fund,

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This paper analyzes the borrowing behavior of a small open economy of a developing country that relies heavily on imports for its capital formation and faces an upward-sloping supply function of foreign loans. Decision makers face uncertainty about the longevity of external shocks. That uncertainty generates forecast errors that lead to substantial debt accumulation. It is found that the assumption of an upward-sloping supply function of foreign loans, which is a more realistic formulation for developing countries than the usual perfect elasticity, offers an alternative to the Uzawa-type utility function for analyzing asset accumulation in the small open economy framework.

Normal prices, technical change and accumulation.
Authors: ---
ISBN: 0312161476 Year: 1997 Publisher: Basingstoke Macmillan

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Keywords

Economics, Mathematical --- Equilibrium (Economics) --- Prices --- Production (Economic theory) --- Saving and investment --- Technological innovations --- 338.52 --- 338.00 --- 338.043 --- AA / International- internationaal --- Economics --- Mathematical economics --- Econometrics --- Mathematics --- DGE (Economics) --- Disequilibrium (Economics) --- DSGE (Economics) --- Dynamic stochastic general equilibrium (Economics) --- Economic equilibrium --- General equilibrium (Economics) --- Partial equilibrium (Economics) --- SDGE (Economic theory) --- Statics and dynamics (Social sciences) --- Accumulation, Capital --- Capital accumulation --- Capital formation --- Investment and saving --- Saving and thrift --- Capital --- Supply-side economics --- Wealth --- Investments --- Breakthroughs, Technological --- Innovations, Industrial --- Innovations, Technological --- Technical innovations --- Technological breakthroughs --- Technological change --- Creative ability in technology --- Inventions --- Domestication of technology --- Innovation relay centers --- Research, Industrial --- Technology transfer --- Commercial products --- Commodity prices --- Justum pretium --- Price theory --- Consumption (Economics) --- Cost --- Costs, Industrial --- Money --- Cost and standard of living --- Supply and demand --- Value --- Wages --- Willingness to pay --- Microeconomics --- Demand (Economic theory) --- Theorie van de productie --- Technologische vooruitgang. Automatisering. Computers. Werkgelegenheid en informatica --- Methodology --- Economic production


Book
The Insurance Role of Social Security : Theory and Lessons for Policy Reform
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ISBN: 1462381200 1452768390 1283556081 1451899076 9786613868534 Year: 1997 Publisher: Washington, D.C. : International Monetary Fund,

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This paper examines the impact of social security on welfare. The provision of social security reduces precautionary savings and encourages early retirement. Consequently, it lowers aggregate capital, employment, output, and consumption. On the other hand, it also provides old age insurance. This trade-off is examined using a life-cycle general equilibrium model. The paper finds that the current U.S. Social Security system can improve welfare even though the levels of aggregate output, employment, capital, and consumption fall relative to their levels without such a system. The welfare gains arise from insurance against living much longer than expected.

Dynamic economics : optimization by the Lagrange method
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ISBN: 0195101928 019985503X 0195356314 1429415274 1280528524 9780195356311 9780195101928 Year: 1997 Publisher: New York : Oxford University Press,

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Gregory C. Chow, father of the Chow Test of stability of economic relations and a major contributor to econometrics and economics, here provides a unified and simple treatment of dynamic economics. Using dynamic optimization as his main theme, Chow introduces the Lagrange method as a more convenient tool than dynamic programming for solving dynamic optimization problems. Dynamic Economics presents the optimization framework for dynamic economics so that readers can understand and use it for applied and theoretical research. Chow shows how the method of Lagrange multipliers is easier and more efficient for solving dynamic optimization problems than dynamic programming, and so enables readers to grasp the substance of dynamic economics more fully. He employs the Lagrange method to study and solve problems in a variety of areas including economic growth, general equilibrium theory, business cycles, dynamic games, finance, and investment--while also discussing numerical methods and analytical solutions. Teaching by example, Chow solves simple problems before moving on to more general propositions. Problems are provided at the end of each chapter. This accessible and wide-ranging work is an ideal primary text for graduate and undergraduate courses in dynamic economics. It can also be used as a supplementary text for courses in mathematics for economists, mathematical economics, macroeconomics, economic development, finance, operations research, and control theory in engineering schools, among others.

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