The Fisher effect: reprise

Article Abstract:

The Fisher effect's validity was evaluated via the Engle-Granger two-step and Johansen's vector autoregressive error correction tests. The tests sought to find a long-term equilibrium relation between inflation and the expected inflation component of the nominal interest rate. The results, which did not support the Fisher effect's concept of a non-correlation between price changes and interest rates, supported cointegration between actual inflation and the expected inflation component of the three-months Treasury bill rate.

Inflation (Finance), Equilibrium (Economics), Inflation (Economics)

---

Can fiscal spending be contractionary when interest rates have supply-side effects?

Article Abstract:

The theory that increases in fiscal spending lead to a temporary recession whenever direct aggregate supply-side effects of interest rates are present is investigated. Specifically, weaknesses in the literature on the subject are addressed. These pertain to the use of an internally consistent framework for specifying aggregate demand and aggregate supply effects of interest rates as wel as to the contribution of interest rate expectation effects.

Government spending policy, Supply-side economics

---

Who pays for fiscal expansion? Distributional effects of fiscal spending in a small open economy with foreign capital

Article Abstract:

This article used a general equilibrium model to examine the role of foreign capital in the distributional effects of fiscal spending in a open economy. Findings indicate that fiscal expansion can either diminish the welfare of the fiscal authority or improve the welfare of private agents in this type of economy.

Economics, Research and Development in the Social Sciences and Humanities, Hong Kong, Foreign investments, Expenditures, Public, Public expenditures

Similar abstracts:

• Abstracts: The distorting effect of the prudent-man laws on institutional equity investments. Following the leader: a study of individual analysts' earnings forecasts
• Abstracts: The international ramifications of tax reforms: supply-side economics in a global economy. Why hasn't tax competition triggered a race to the bottom? Some quantitative lessons from the EU
• Abstracts: Economic growth and its effect on income distribution. Institutional quality and endogenous economic growth. Regional growth patterns and growth contagion
• Abstracts: The Kaleckian model of growth and distribution and its neo-Ricardian and neo-Marxian critiques. A simple model of three economies with two currencies: the eurozone and the USA
• Abstracts: The market for preferences. Akerlof and Kranton on identity in economics: inverting the analysis. Principles of neo-Schumpeterian economics

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.