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Ricardian equivalence - PowerPoint PPT Presentation

TOPIC 4

TOPIC 4. The Role of the Government and Fiscal Policy. The I-S Curve and Fiscal Policy. Some Equations From Lecture 1. The demand side of the economy: Y = C + I + G + NX Given the demand side of the economy and definitions for disposable income and government deficits, we have:

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627 views • 60 slides

Appendix 4.A

Appendix 4.A. A Formal Model of Consumption and Saving. How Much Can the Consumer Afford? The Budget Constraint. Current income y ; future income y f ; initial wealth a Choice variables: a f = wealth at beginning of future period; c = current consumption; c f = future consumption

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577 views • 36 slides

Government &Tax Policies in 2-Period CE Model

Government &Tax Policies in 2-Period CE Model. Government Expenditures Ricardian Equivalence Capital Market Imperfections Social Security. 2-Period Model w/ Government. Recall effect of taxes in one-period model: G = T Consider two-period CE model w/ exogenous income.

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432 views • 27 slides

Intermediate Macroeconomics

Intermediate Macroeconomics. Chapter 4 Introduction to the Equilibrium Model. Introduction to the Equilibrium Model. The Parsimonious Model What is an Equilibrium Model? Equilibrium Model Solution Method Simple Equilibrium Model in Action.

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279 views • 14 slides

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Ricardian equivalence - PowerPoint PPT Presentation

TOPIC 4

Appendix 4.A

Government &amp;Tax Policies in 2-Period CE Model

Intermediate Macroeconomics

Government &Tax Policies in 2-Period CE Model