1,575,385 research outputs found

    Federal Monetary Policy

    Get PDF
    What is the optimal institutional structure for an independent central bank? The paper shows when it will be optimal for a country to have a central bank to be organized according to federal, purely national or a combination of both aspects. The analysis is then extended to a supranational monetary union and it is shown which organizational structure of a common central bank is optimal for participating countries and when they are willing to join. The implications for an enlargement of a monetary union are derived as well.Monetary union, federalism, monetary policy

    Federal funds : instrument of Federal Reserve policy

    Get PDF
    An abstract for this article is not availableFederal funds ; Monetary policy

    Federal Tax Policy Regarding Universities

    Get PDF
    Should federal tax policy towards universities be reviewed and changed? This study is not a comprehensive look at all the issues raised above, but discusses some of the major ones. Special attention is placed on the tax treatment of university endowments, and what are reasonable rules that should be enacted, if any, to assure that monies are expended in a manner consistent with the granting of tax exempt status. Lesser attention is placed on other issues, such as the use of tuition tax credits

    Federal Reserve intervention policy

    Get PDF

    Federal mandates by popular demand

    Get PDF
    This paper proposes a new framework for studying federal mandates regarding public policies in areas such as environmental quality, public health, highway safety, and the provision of local public goods. Voters have single-peaked preferences along a single policy dimension. There are two levels of government, federal and local. The federal level can constrain local policy by mandating a minimum (or maximum) policy. Localities are free to adopt any policy satisfying the constraint imposed by the federal mandate. We show that voters choose federal mandates that are too strict, which leads to excessively severe mandates. We show that similar results can obtain when federal provision of the public-provided good is more efficient than local provision

    Small Firms, Employment, and Federal Policy

    Get PDF
    [Excerpt] It is widely believed that small firms promote job growth. In fact, small firms both create and eliminate far more jobs than large firms do. On balance, they account for a disproportionate share of net job growth—however, that greater net growth is driven primarily by the creation of new small firms, frequently referred to as start-ups, rather than by the expansion of mature small firms. The greater net job-creation rates associated with new small firms could motivate lawmakers to consider supporting such firms through various policy initiatives. However, policies specifically favoring small firms have both advantages and disadvantages. For instance, policies designed to prevent discrimination or reduce pollution would probably have smaller adverse effects on employment if they exempted small firms in those cases where compliance was particularly costly for small firms. Conversely, some policies CBO has examined that would increase employment, such as reducing payroll taxes for firms that hire additional workers, would be less cost-effective if they were restricted to small firms. Under current federal laws and regulations, small firms already receive more favorable treatment than large firms do in many areas. For example, certain provisions of the tax code relating to capital gains and the expensing of capital investments favor small firms. The Small Business Administration (SBA) helps small firms obtain loans. And many regulatory policies, such as those prescribed by the Family and Medical Leave Act of 1993, include exemptions for small firms. Because further efforts to favor small firms may shift employment away from large firms in an inefficient manner, broadly targeted policies may spur total employment more effectively

    Legislative Entrenchment and Federal Fiscal Policy

    Get PDF

    Outlook for Federal Fiscal Policy

    Get PDF
    macroeconomics, Federal Fiscal Policy

    POLICY INNOVATION IN FEDERAL SYSTEMS

    Get PDF
    Conventional wisdom has it that policy innovation is better promoted in a federal rather than in a unitary system. Recent research, however, has provided theoretical evidence to the contrary: a multi-jurisdictional system is characterized---due to the existence of a horizontal information externality---by under-provision of policy innovation. This paper presents a simple model that introduces political competition for federal office. Under such competition political actors use the innovative policies in order to signal ability to the electorate. In the equilibrium analyzed policy innovation occurs more frequently than in a unitary system. It is thus shown that, once electoral motives are accounted for, the conventional wisdom is validated.Fiscal federalism; policy innovation; policy experimentation.

    Tax Competition in a Fiscal Union with Decentralized Leadership

    Get PDF
    This paper examines capital tax competition in the presence of an interstate transfer policy without federal commitment. Lack of commitment implies that tax policy is chosen prior to federal transfers. The paper’s main result is that ex-post federal policy internalizes horizontal fiscal externalities, insulating tax policy from capital mobility. Federal policy, however, introduces a new source of inefficiency unrelated to tax competition. Specifically, ex-post transfer payments prove to be equivalent to an interstate revenue-sharing system which may render federal intervention in the presence of fiscal externalities welfare-deteriorating relative to tax competition.federalism, capital tax competition, commitment, soft budget constraints
    corecore