Government budget deficits in large open economies
Buiter, W. and Sibert, Anne (2011) Government budget deficits in large open economies. Working Paper. Birkbeck, University of London, London, UK.
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Abstract
Large and growing levels of public debt in the United States, United Kingdom, Japan and the Euro Area raise new interest in the cross-country effects of a large open economy's deficits. We consider a dynamic optimising model with costly tax collection and exogenously given public spending and initial debt. We ask whether the externalities associated with an individual country's deficits are positive or negative. We characterise the path of taxes in the Nash equilibrium where policy makers act nationalistically and compare this outcome to the global optimal outcome.
Metadata
| Item Type: | Monograph (Working Paper) |
|---|---|
| Additional Information: | JEL classification: E62, F42, H21 |
| Keyword(s) / Subject(s): | fiscal policy, international policy coordination, optimal taxation |
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Depositing User: | Sarah Hall |
| Date Deposited: | 06 May 2014 16:32 |
| Last Modified: | 02 Aug 2023 17:10 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/9684 |
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