An equilibrium analysis of central bank independence and inflation

Banks and banking, Central ; Inflation (Finance)

An analysis of the impact of two fiscal policies on the behavior of a dynamic asset market

Fiscal policy

An alternative neo-classical growth model with close-form decision rules

Econometric models

A primer on the nature of business cycles

Discussions of the effects of monetary and fiscal policy sometimes center on the impact of such policies in ameliorating fluctuations associated with the business cycle. However, though familiar with the term "business cycle," many people are not aware of what it refers to exactly. In this article, Gregory Huffman presents an explanation of the term and provides a detailed illustration of post-World War II U.S. business cycles. He also contrasts the behavior of various U.S. economic time series over the business cycle with similar Canadian statistics and points out some apparent anomalies in the data.Business cycles ; Monetary policy ; Time-series analysis

On the political economy of immigration and income redistribution

Emigration and immigration ; Income distribution

On the political economy of immigration

Emigration and immigration

On the existence of nonoptimal equilibria in dynamic stochastic economies

Economic development

The political economy of endogenous taxation and redistribution

Taxation

The dynamics of immigration policy with wealth-heterogeneous immigrants

In this paper we consider a simple intertemporal economy in which immigrants, if admitted, bring heterogeneous amounts of capital. We show that under certain conditions there is a level of immigration which maximizes the economy's capital-labor ratio, and that this level of immigration is the preferred choice of a majority of the economy's citizens. We then characterize, in an overlapping generations setting, the dynamics of capital accumulation and immigration policy, which can include multiple steady state equilibria and a sensitivity of immigration levels to changes in the economy's technology growth rate.Emigration and immigration

The dynamic impact of fundamental tax reform part 2 : extensions

In this second of two articles on the economic impact of fundamental tax reform, Gregory Huffman and Evan Koenig extend their earlier framework for analyzing how the adoption of a flat-rate consumption tax would affect the economy over time. They argue that if tax reform is to be successful in stimulating investment and raising long-run living standards, then it is important that ways be found to avoid increasing the rate of labor-income taxation. Increases in labor-income tax rates can undo the positive economic effects of a cut in the rate of capital-income taxation. Conversely, cuts in labor-income tax rates reinforce savings incentives and contribute to higher steady-state levels of consumption. Huffman and Koenig also demonstrate that the economy’s immediate response to tax reform is muted—and the overall adjustment process can be substantially prolonged—when firms find it expensive to add quickly to their stocks of plant and equipment.Taxation ; Tax auditing ; Tax reform