Government Debt in an Open Economy Technical Report No. 58 Douglas Laxton, Robert Tetlow This paper introduces the CORE model, a prototype for a new quarterly model of the Canadian economy, designed for projections and policy analysis with focus beyond the very short run. The model has a clearly defined equilibrium and explicit adjustment mechanisms, primarily through relative prices, that are dynamically stable. Overlaid on a neo-classical growth model […] Content Type(s): Staff research, Technical reports Topic(s): Fiscal policy JEL Code(s): C, C5, C53, F, F3, F32, H, H3, H30, H6, H60
Les effets macroéconomiques des déficits budgétaires : résultats d'un modèle de simulation Technical Report No. 47 Pierre Duguay, Yves Rabeau An increase in a government deficit can have two effects: short-term stimulation of aggregate demand and employment, and long-term contraction of potential output. In this paper, these effects are illustrated using a dynamic, macroeconomic simulation model. The model is not a forecasting tool; it is intended to bridge the gap between Keynesian and supply-side economics […] Content Type(s): Staff research, Technical reports Topic(s): Economic models, Fiscal policy JEL Code(s): H, H6, H60
La non-neutralité du mode de financement du gouvernement Technical Report No. 36 Paul Masson It has long been a subject of debate among economists as to whether different methods of financing government expenditures—issuing bonds or raising taxes—will bring about different effects on the economy. The purpose of this technical report is to quantify the substitution effects brought about by tax rate changes and to see to what extent they […] Content Type(s): Staff research, Technical reports Topic(s): Debt management JEL Code(s): H, H6, H60
Modelling Government Fiscal Behaviour in Canada Technical Report No. 34 Jack Selody, Kevin Lynch There are many models of fiscal policy in the economic literature and each has been based on a particular set of assumptions concerning the interaction of policy variables. However, even though these assumptions are critical to the behaviour of the models, there has as yet been no systematic attempt to test their validity or relative […] Content Type(s): Staff research, Technical reports Topic(s): Fiscal policy JEL Code(s): C, C5, C50, H, H3, H30, H6, H60