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dc.contributor.authorGuest, Ross
dc.contributor.authorMakin, Anthony
dc.contributor.editorE. Kwan Choi
dc.date.accessioned2017-05-03T11:35:37Z
dc.date.available2017-05-03T11:35:37Z
dc.date.issued2013
dc.date.modified2014-09-17T22:31:52Z
dc.identifier.issn1363-6669
dc.identifier.doi10.1111/rode.12054
dc.identifier.urihttp://hdl.handle.net/10072/55689
dc.description.abstractIn 2009/10 governments around the world implemented unprecedented fiscal stimulus in order to counter the impact of the Global Financial Crisis of 2008/09. This paper analyzes the impact of fiscal stimulus using a dynamic open economy, overlapping generations model that allows for feedback effects of fiscal stimulus on private sector expenditure via changes in the tax rate and the interest rate. There are two types of goods-traded (T) and nontraded (N) goods-which differ in their capital intensities. The main qualitative result is that the dynamic output gains from fiscal stimulus depend on the productivity of the initial stimulus spending, on the speed of repayment of debt, on the sensitivities of the interest rate to government debt and of labor supply to the tax rate. Also, the overlapping generations framework allows an intergenerational welfare analysis. Among the biggest winners from stimulus are those about to retire. The biggest losers are those near the start of their working lives when the stimulus is implemented.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.languageEnglish
dc.language.isoeng
dc.publisherWiley-Blackwell Publishing
dc.publisher.placeUnited Kingdom
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom609
dc.relation.ispartofpageto626
dc.relation.ispartofissue3
dc.relation.ispartofjournalReview of Development Economics
dc.relation.ispartofvolume17
dc.rights.retentionY
dc.subject.fieldofresearchEconomic theory
dc.subject.fieldofresearchApplied economics
dc.subject.fieldofresearchMacroeconomics (incl. monetary and fiscal theory)
dc.subject.fieldofresearchBanking, finance and investment
dc.subject.fieldofresearchDevelopment studies
dc.subject.fieldofresearchcode3803
dc.subject.fieldofresearchcode3801
dc.subject.fieldofresearchcode380112
dc.subject.fieldofresearchcode3502
dc.subject.fieldofresearchcode4404
dc.titleThe Dynamic Effects of Fiscal Stimulus in a Two-Sector Open Economy
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.date.issued2013
gro.hasfulltextNo Full Text
gro.griffith.authorGuest, Ross
gro.griffith.authorMakin, Tony J.


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