Future Fiscal and Budgetary Shocks

• Main Authors: HOON, Hian Teck, Phelps, Edmund S.
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2008
• 主題: Future shocks; Business assets; Employment.; Econometrics; Finance
• 在線閱讀: https://ink.library.smu.edu.sg/soe_research/73; https://ink.library.smu.edu.sg/context/soe_research/article/1072/viewcontent/FutureFiscal.pdf
• 機構: Singapore Management University

We study the effects of future tax and budgetary shocks in a non-monetary and possibly non-Ricardian economy. An (unanticipated) temporary labor tax cut to be effective on a given future date—a delayed “debt bomb”—causes at once a drop in the (unit) value placed on the firms' business asset, th...