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Macroeconomic and welfare costs of U.S. fiscal imbalances /
In this paper we use a general equilibrium model with heterogeneous agents to assess the macroeconomic and welfare consequences in the United States of alternative fiscal policies over the medium-term. We find that failing to address the fiscal imbalances associated with current federal fiscal polic...
| Clasificación: | Libro Electrónico |
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| Autores principales: | , |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
[Washington, D.C.] :
International Monetary Fund,
©2012.
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| Colección: | IMF working paper ;
WP/12/38. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | In this paper we use a general equilibrium model with heterogeneous agents to assess the macroeconomic and welfare consequences in the United States of alternative fiscal policies over the medium-term. We find that failing to address the fiscal imbalances associated with current federal fiscal policies for a prolonged period would result in a significant crowding-out of private investment and a severe drag on growth. Compared to adopting a reform that gradually reduces federal debt to its pre-crisis level, postponing debt stabilization for two decades would entail a permanent output loss of about 17 percent and a welfare loss of almost 7 percent of lifetime consumption. Moreover, the long-run welfare gains from the adjustment would more than compensate the initial losses associated with the consolidation period. |
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| Notas: | At head of title: Fiscal Affairs Department. Title from PDF title page (IMF Web site, viewed January 31, 2012). "January 2012." |
| Descripción Física: | 1 online resource (35 pages) : illustrations |
| Bibliografía: | Includes bibliographical references. |
| ISBN: | 1463951493 9781463951498 1463933819 9781463933814 9781463988890 1463988893 |