Risk Assessment Under a Nonlinear Fiscal Policy Rule

Shiamptanis, Christos

doi:10.1111/ecin.12199

Cited by 7 publications

(4 citation statements)

References 33 publications

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“…In a cubic regression, a negative coe¢ cient on the cubic debt term yields …scal fatigue. In a quadratic regression, a negative coe¢ cient on the squared debt term is su¢ cient for …scal fatigue (Shiamptanis 2015). Using equations ( 6) and (11), the primary surplus (s t = t y t g t z t ) can be written as a quadratic function in terms of debt…”

Section: Contacts With the Literaturementioning

confidence: 99%

Tax Austerity: Does It Avert Solvency Crises?

Shiamptanis¹

2023

J of Money Credit Banking

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Many high-debt countries are adopting tax austerity, whereby governments raise their tax rate as the debt level rises with the hope to dispel future solvency crisis. This paper investigates the implications of tax austerity on the likelihood of a solvency crisis. A solvency crisis occurs once adverse shocks push the debt level above its e¤ective debt limit, which is the maximum level of debt that the government can repay. We derive the e¤ective debt limit and show that its position depends on tax austerity. We …nd that high-debt countries like Italy that undergo tax austerity could lower their e¤ective debt limit and induce a solvency crisis in the near future.

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Section: Contacts With the Literaturementioning

confidence: 99%

Tax Austerity: Does It Avert Solvency Crises?

Shiamptanis¹

2023

J of Money Credit Banking

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“…Rather than interest rule, the money growth rule is used to observe the possible liquidity effect and price puzzle. The fiscal policy rule, following Bohn (1998), Chung et al (2007) and Shiamptanis (2015), is specified as:…”

Section: The Policy Rulesmentioning

confidence: 99%

Accounting for monetary and fiscal policy effects in a simple dynamic general equilibrium model

Chang

Liu²

2018

Economic Research-Ekonomska Istraživanja

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We construct a simple dynamic general equilibrium model to examine several important macroeconomic issues in the study. The active monetary and passive fiscal (AM/PF) policy may induce the raising of both interest rates and inflation rates. We find that there is a positive relationship between shopping time and inflation because higher inflation causes agents to reduce their money holdings so as to take more time for shopping. In addition, shopping time and output move in opposite ways due to the fact that higher shopping time results in lower working hours, so as to decrease production. Finally, this model fails to capture liquidity effect, but rather identify price puzzle through an expansion of monetary policy shock.

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“…The study, therefore, intends to investigate the amount of public debt in Nigeria that justifies the intended purpose of stimulating economic growth. The study leans on the works of Ghosh, Kim, Mendoza, Ostry and Qureshi, (2011), Shiamptanis, (2015), and Vdovychenko (2016.…”

Section: Introductionmentioning

confidence: 99%

Effect of Public Debt on Economic Growth in Nigeria with or without Domestic Investment

Fasoye,

Olayiwola

2024

NIU JSS

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The paper examines the effect of public debt on economic growth in Nigeria with or without domestic investment between 1981 and 2020 using a technique of Dynamic Least Square (DOLS). The findings of the study reveal that public debt in Nigeria retards economic growth through reduction in the level of investment. This indicates the possibility that the current levels of public debt in the Nigeria might not have been reducing the volume of growth but have the tendency to create a poorer macroeconomic and uncertain climate for investment. The implication is that the nonlinear relationship between debt and economic growth is a reality. It is suggested that there should be big push investment into all sectors of the economy that serve as engine of growth to the nation and whenever public debt is acquired, domestic investment must be given priority. Keywords: Effect, Public Debt, Economic Growth, Domestic Investment, Nigeria

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Risk Assessment Under a Nonlinear Fiscal Policy Rule

Cited by 7 publications

References 33 publications

Tax Austerity: Does It Avert Solvency Crises?

Tax Austerity: Does It Avert Solvency Crises?

Accounting for monetary and fiscal policy effects in a simple dynamic general equilibrium model

Effect of Public Debt on Economic Growth in Nigeria with or without Domestic Investment

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