Title of article :
The marketpriceoffiscaluncertainty
Author/Authors :
Mariano M. Croce، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2012
Abstract :
RecentfiscalinterventionshaveraisedconcernsaboutUSpublicdebt,futuredistor-
tionarytaxpressure,andlong-rungrowthpotential.Weexplorethelong-runimplica-
tions ofpublicfinancingpoliciesaimedatshort-runstabilizationwhen:(i)agentsare
sensitivetomodeluncertainty,asin HansenandSargent(2007), and(ii)growthis
endogenous,asin Romer(1990). Wefindthatcountercyclicaldeficitpoliciespromoting
short-runstabilizationreducethepriceofmodeluncertaintyatthecostofsignificantly
increasingtheamountoflong-runrisk.Ultimatelythesetaxpoliciesdepressinnovation
and long-rungrowthandmayproducewelfarelosses
Journal title :
Journal of Monetary Economics
Journal title :
Journal of Monetary Economics
