COORDINATING MACROECONOMIC POLICY IN A SIMPLE AK GROWTH MODEL

Modern theories of government finance stress the importance of an economy’s fiscal deficits in determining the course of monetary policy. Modern growth theory stresses the role of monetary factors in economic growth. This paper explores how these two are interrelated, using a simple AK growth model, one with money, reserve requirements, and government debt. We provide a comprehensive look at the coordination of macroeconomic policy and its effects on long-run growth under three alternative coordinating arrangements. We uncover some unconventional results regarding the relationship between growth and a number of policy variables; these rest squarely on the constraint of the coordination processMonetary and Fiscal Policy; AK growth model; inflation targeting; open market operations; reserve requirements

A Socio-Informatic Approach to Automated Account Classification on Social Media

Automated accounts on social media have become increasingly problematic. We propose a key feature in combination with existing methods to improve machine learning algorithms for bot detection. We successfully improve classification performance through including the proposed feature.Comment: International Conference on Social Media and Societ

Patience Cycles

Evidence supports the notion that those who grow up to be patient dobetter than those who do not. Parents can inculcate the virtue of delayedgratiÂ…cation in their children by taking the right actions. We study a modelin which parents, for selÂ…sh reasons, invest resources to raise patient chil-dren. In the model, patience raises the marginal return to human capitalacquisition giving the patient young an incentive to spend more on theirown education at the expense of investment in their own progenyÂ’s patience.This dynamic generates intergenerational patience cycles.patience; delayed gratification; human capital

Choosing to Keep Up with the Joneses and Income Inequality

We study a variant of the conventional keeping-up-with-the-Joneses setup in which heterogeneous-ability agents care both about consumption and leisure and receive an utility premium if their consumption exceeds that of the Joneses'. Unlike the conventional setup in which all agents are assumed to want to participate in the rat race of staying ahead of the Joneses, our formulation explicitly permits the option to drop out. Mean-preserving changes in the spread of the underlying ability distribution, via its effect on the economy-wide composition of rat-race participants and drop-outs, have important consequences for induced distributions of leisure and income, consequences that are unobtainable using conventional keeping-up preferences.keeping up with the Joneses; consumption externalities; leisure; labor supply

Deviant Generations, Ricardian Equivalence, and Growth Cycles

TTwo equilibrium possibilities are known to obtain in a standard overlapping-generations model with dynastic preferences: either the altruistic bequest motive is operative for every generation (in which case, Ricardian equivalence obtains) or it is not, for any generation. Dynamic equilibria, where the bequest motive is occasionally operative, cannot emerge. This paper studies bequest-giving behavior and out-of-steady-state bequest and growth dynamics in a�Ak�model with intra- and inter-generational consumption externalities. These externalities, by their very presence, do not destroy Ricardian equivalence. They may, however, give rise to�deviant generations—generations that do not leave a bequest having received an inheritance, and vice versa—and that seals the fate for Ricardian equivalence. Consumption externalities may also generate interesting indeterminacies and endogenous growth cycles that did not exist otherwise.bequests; Ricardian equivalence; growth cycles; Consumption externality

OF INFINITE REGRESS: PARADIGMS UNBROKEN IN J.-K. HUYSMANS'S A REBOURS

A problemática multiplexa do texto como postura, construção, subterfúgio, em si mesma compelativa e emaranhada, cria repercussões ainda mais engenhosas e extirpadoras em A rebours, de Huysmans. Aqui a narrativa entra num diálogo lúdico e mudo com o Eu numa espécie de proliferação e escoriação auto-anulativa de in-significado. Assim, testemunhamos um pseudo-desafio de dentro, uma mascarada de tocaia, uma confabulação intrincada alçada ao segundo poder

Taxation - Federal Income Tax - Consequences to Seller and Buyer of Covenant Not to Compete

The owners of the entire capital stock of a newspaper business received an offer of $1,000,000 for their stock and a covenant not to compete with buyers for ten years. After the offer was accepted and the contract of sale drawn up, buyer asked for a clause in the contract evaluating the covenant not to compete at$50 a share and the stock at $150 a share in order to help him taxwise. The clause was accepted with little discussion. The sellers reported the entire proceeds of the sale on their income tax returns as long term capital gain, but the Commissioner ruled that$50 per share of the proceeds constituted consideration for the covenant not to compete and was taxable as ordinary income. The Tax Court held that since the covenant was treated as a separate item in the negotiations, the amount received for it was ordinary income. Clarence Clark Hamlin Trust, 19 T.C. 718 (1953). The buyer treated $50 per share of the amount paid as a capital expenditure for the covenant and deducted an amount representing amortization of the cost. In this case the Commissioner argued that the agreement not to compete was no more than an incident to the transfer of the good will of the business and had no separable value. The Tax Court held that the covenant had a separable value and was a depreciable capital asset. Gazette Telegraph Co., 19 T.C. 692 (1953)