Analysis of tax effects on household debts of a nation in a monetary union

Kim, Minseong (2016): Analysis of tax effects on household debts of a nation in a monetary union.

Abstract

Unlike many theoretical analysis of tax effects on household debts in a monetary union, this paper builds up analysis from a household budget constraint, instead of starting from a model. By a monetary union, it is assumed that all nations in the union share same currency. The size of tax multiplier is analyzed.

• Item Type: MPRA Paper
• Language: English
• Keywords: fiscal multiplier; tax multiplier; debt analysis; monetary union; household debts; international macroeconomics
• Subjects: E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; F - International Economics > F1 - Trade > F19 - Other; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F45 - Macroeconomic Issues of Monetary Unions; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General; H - Public Economics > H6 - National Budget, Deficit, and Debt > H60 - General

References

Notes on Macroeconomic Theory. Thomas Sargent. Federal Reserve Bank of Minneapolis Working Paper Series 41 No. 75-76.