Interest rates and fiscal consolidation programs
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/142285 |
Resumo: | We claim that changes in the interest rate impose impacts on multipliers of fiscal consolidations programs. We use the database and extend the regression in Alesina et al. (2015a)with interest rates to check the relationship with fiscal multipliers. Then, we adapt the overlapping generations model with incomplete markets used in Brinca et al. (2021) and fix the wage and interest rate. Using that adaptation of the model, we assess the impact of a change in the interest rates of three calibrated European economies. We then test the mechanism and compare the impacts based on countries’ different Gini coefficients and percentage of agents constrained. For both analysis we conclude that there is a negative relationship between the interest rate and fiscal consolidation multipliers under a fixed wage and interest rate environment. We also conclude that countries with higher percentage of agents constrained are more resistant to changes on interest rates. |
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Interest rates and fiscal consolidation programsInterest ratesMacroeconomicsInequalityFiscal consolidationDomínio/Área Científica::Ciências Sociais::Economia e GestãoWe claim that changes in the interest rate impose impacts on multipliers of fiscal consolidations programs. We use the database and extend the regression in Alesina et al. (2015a)with interest rates to check the relationship with fiscal multipliers. Then, we adapt the overlapping generations model with incomplete markets used in Brinca et al. (2021) and fix the wage and interest rate. Using that adaptation of the model, we assess the impact of a change in the interest rates of three calibrated European economies. We then test the mechanism and compare the impacts based on countries’ different Gini coefficients and percentage of agents constrained. For both analysis we conclude that there is a negative relationship between the interest rate and fiscal consolidation multipliers under a fixed wage and interest rate environment. We also conclude that countries with higher percentage of agents constrained are more resistant to changes on interest rates.Brinca, PedroRUNEstorninho, Pedro Afonso Mateus2022-07-22T09:34:02Z2022-01-142022-01-142022-01-14T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10362/142285TID:202999130enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T05:19:53Zoai:run.unl.pt:10362/142285Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:50:14.852907Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Interest rates and fiscal consolidation programs |
title |
Interest rates and fiscal consolidation programs |
spellingShingle |
Interest rates and fiscal consolidation programs Estorninho, Pedro Afonso Mateus Interest rates Macroeconomics Inequality Fiscal consolidation Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Interest rates and fiscal consolidation programs |
title_full |
Interest rates and fiscal consolidation programs |
title_fullStr |
Interest rates and fiscal consolidation programs |
title_full_unstemmed |
Interest rates and fiscal consolidation programs |
title_sort |
Interest rates and fiscal consolidation programs |
author |
Estorninho, Pedro Afonso Mateus |
author_facet |
Estorninho, Pedro Afonso Mateus |
author_role |
author |
dc.contributor.none.fl_str_mv |
Brinca, Pedro RUN |
dc.contributor.author.fl_str_mv |
Estorninho, Pedro Afonso Mateus |
dc.subject.por.fl_str_mv |
Interest rates Macroeconomics Inequality Fiscal consolidation Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Interest rates Macroeconomics Inequality Fiscal consolidation Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
We claim that changes in the interest rate impose impacts on multipliers of fiscal consolidations programs. We use the database and extend the regression in Alesina et al. (2015a)with interest rates to check the relationship with fiscal multipliers. Then, we adapt the overlapping generations model with incomplete markets used in Brinca et al. (2021) and fix the wage and interest rate. Using that adaptation of the model, we assess the impact of a change in the interest rates of three calibrated European economies. We then test the mechanism and compare the impacts based on countries’ different Gini coefficients and percentage of agents constrained. For both analysis we conclude that there is a negative relationship between the interest rate and fiscal consolidation multipliers under a fixed wage and interest rate environment. We also conclude that countries with higher percentage of agents constrained are more resistant to changes on interest rates. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-07-22T09:34:02Z 2022-01-14 2022-01-14 2022-01-14T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/142285 TID:202999130 |
url |
http://hdl.handle.net/10362/142285 |
identifier_str_mv |
TID:202999130 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799138099360432128 |