On the construction of a finite Siegel space

In this note we construct a finite analogue of classical Siegel's Space. Our approach is to look at it as a non commutative Poincare's half plane. The finite Siegel Space is described as the space of Lagrangians of a $2n$ dimensional space over a quadratic extension $E$ of a finite base field $F$. The orbits of the action of the symplectic group $Sp(n,F)$ on Lagrangians are described as homogeneous spaces. Also, Siegel's Space is described as the set of anti-involutions of the symplectic group.2

Ricardian Equivalence Proposition in a NK DSGE Model for two Large Economies: The EU and the US

This paper examines the macroeconomic effects of active fiscal policy management coupled with a monetary policy that follows the Taylor principle. The objective is to investigate the relevance of the Ricardian Equivalence Proposition (REP) in a framework where two large open economies interact and a fraction of the consumers is financially constrained. According to an estimated vector autoregressive model, a positive shock in government expenditure leads to an increase in private consumption (at odds with the permanent income hypothesis). The channels are studied in a fully microfounded dynamic stochastic general equilibrium model economy calibrated for the Euro Area (EU-12) and for the United States. The crucial parameter that drives the break of the REP is the share of financially constrained consumers. Firms produce tradable varieties in a monopolistic competition framework and pricing is à la Calvo, which leads to nominal price stickiness. Labor varieties are immobile across countries and are demanded in an aggregated fashion by firms. Fiscal policy is specified as a time-consistent rule. We simulate through impulseresponse functions parameterizations that yield results consistent with the REP, and estimate a subset of deep parameters employing Bayesian techniques.