The Brookings Quarterly Model: As an Aid to Longer Term Economic Policy Analysis

Schink, George R.

doi:10.2307/2525884

Cited by 3 publications

(1 citation statement)

References 2 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…See, for example, Hickman et al (1975: Table 3) and Schink (1975 : Tables 1-3). While the evidence on comparative advantage is unclear, the sizes of dynamic multipliers are apparently sensitive to the composition of government spending and the type of tax changes assumed Furthermore, since most large-scale econometric models have some type of built-in Phillips curve mechanism and tax and expenditure changes affect the economy through similar channels, it would be very surprising if any conclusive evidence on the comparative advantage thesis turned up in these models.…”

Section: Comparative Advantage Of Tax and Expenditure Policy In Achiementioning

confidence: 99%

Spatial Variations in Unemployment and Inflation: Some Implications for Fiscal Policy

Johnson

Beard

Carson³

1978

Public Finance Quarterly

View full text Add to dashboard Cite

In this paper we consider the spatial dispersion of unemployment vis-à-vis that of inflation and the implication of this relative dispersion for fiscal policy. Two empirical tests yield results that are consistent with our a priori expectations that inflation is more evenly distributed throughout the economy (i.e., less dispersed spatially) than is unemployment. Using a simple short-run model, we argue that tax policy should be geared to a price stability objective and expenditure policy to a full employment objective. Consequently, the Phillips curve dilemma could be lessened by the appropriate use of tax and expenditure policy.Despite the persistence of high overall rates of unemploy-ment and inflation, little theoretical or empirical attention has been devoted to the spatial dispersion of unemployment vis-avis that of inflation or to the theoretical implication of this relative dispersion for fiscal policy. Given differences in spatial dispersion, is it possible to lessen, or even to eliminate, a &dquo;simple&dquo; national Phillips curve-type trade off between unemployment and inflation by pairing tax policy with one objective and expenditure policy with the other?1

show abstract

Section: Comparative Advantage Of Tax and Expenditure Policy In Achiementioning

confidence: 99%