Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

How does uncertainty about future fiscal policy affect current macroeconomic variables?

Tools
- Tools
+ Tools

UNSPECIFIED (1998) How does uncertainty about future fiscal policy affect current macroeconomic variables? SCANDINAVIAN JOURNAL OF ECONOMICS, 100 (2). pp. 473-494.

Research output not available from this repository, contact author.

Request Changes to record.

Abstract

A dynamic stochastic general equilibrium macromodel is constructed, based on infinitely lived, dynamically optimising households with labour market monopoly power. Randomness in future government spending causes randomness in the future output and price levels, both when the money wage is flexible and when it is set one period in advance. We show that, through three different mechanisms, rational anticipation of this depresses current aggregate demand. If the wage is preset, it thereby also depresses current output. Such fiscal uncertainty is suggested as one possible explanation for the faltering of the economic recovery in Europe in 1995 and 1996.

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
Journal or Publication Title: SCANDINAVIAN JOURNAL OF ECONOMICS
Publisher: BLACKWELL PUBL LTD
ISSN: 0347-0520
Official Date: 1998
Dates:
DateEvent
1998UNSPECIFIED
Volume: 100
Number: 2
Number of Pages: 22
Page Range: pp. 473-494
Publication Status: Published

Data sourced from Thomson Reuters' Web of Knowledge

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item
twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us