This paper considers optimal fiscal policy in a deterministic Lucas and Stokey (1983) economy in the absence of government commitment. In every period, the government chooses a labor income tax and issues any unconstrained maturity structure of debt as a function of its outstanding debt portfolio. We find that the solution under commitment cannot always be sustained through the appropriate choi...

 The swell in government spending threatens to diminish long term growth potential in many nations. Our study of 37 countries reveals how enlarged government spending meaningfully dents the efficiency of investment and potential for future growth.  In response to the financial crisis, Greece, the UK, and Spain implemented the loosest fiscal policies during the 2008-2010 period, among 37 natio...

National labour market institutions interact across national boundaries when product markets are global. Labour market policies can thus entail spill-overs, a fact widely ignored in the academic literature. This paper studies the effects of wage subsidies in an international duopoly model with unionised labour markets. We document both positive and negative spill-over effects and discuss the be...

A simple model of activist macroeconomic policy derives a reaction function by assuming that rational governments have performance objectives, but are constrained by the Phillips curve. Although not formally modeled, governments apply a variety of instruments to influence inflation and output, in addition to monetary policy these including fiscal policy, bailouts and exchange rates. Our econome...

considering the importance of government fiscal policy (government spending and state tax income) in economy and its effectiveness in well-being of people, this paper examines the effects of fiscal policy on poverty during the period 1386-1363 in iran. in this paper, considering the fact that poverty changes can be divided to changes in economic growth and changes in income distribution; initia...

There is a pressing need to reduce both the prevalence and impact of obesity. This review begins with a discussion of the roles of treatment and prevention. Two overriding issues, weight bias and the addictive nature of food, are covered because of their importance not only to the individuals affected but also to public policy. We then cover promising policy areas in which changes can be implem...

A major challenge for the multilateral trading system is to secure the benefits of trade liberalization without infringing on the freedom of governments to pursue legitimate domestic objectives. The difficulty lies in distinguishing between two types of situations. In one, a non-protectionist government cannot prevent certain domestic policies from incidentally discriminating against foreign co...

Entrepreneurship researchers and public policy analysts have promoted governmental programs as a means of increasing business creation activity and success rates. This review suggests that attitudes toward and by women may be the single most important factor in the propensity and sustainability of new enterprise creation by women. Rather than create programs specifically targeted to new busines...

Agglomeration tendencies of industrial firms significantly affect the nature of tax competition. This paper analyzes tax competition between two countries over an infinite time horizon in an economy with trade costs and internationally mobile industrial firms. Most of the previous studies on tax competition in the ‘new economic geography’ framework employ static models. In this study, two gover...