Showing papers by "Jan in 't Veld published in 2008"
Posted Content•
01 Jan 2008
TL;DR: In this paper, a micro-founded DSGE model with endogenous growth was used to analyse the macroeconomic impact of structural reforms in Europe, and the results confirmed the beneficial effects on output and employment of skill-biased tax reforms, measures that improve the skill composition of the labour force, R&D subsidies, raising competition in final goods market, increased financial market integration and removing entry barriers in certain markets.
Abstract: This paper describes the endogenous growth version of the QUEST III model and uses it to analyse the macroeconomic impact of various structural reform measures. This paper describes a micro-founded DSGE model with endogenous growth that is used to analyse the macroeconomic impact of structural reforms in Europe. The new QUEST III model is a useful tool for analysing the costs and benefits of reforms in terms of concrete and quantifiable policy measures, in particular fiscal policy instruments such as taxes, benefits, subsidies and education expenditures, administrative costs faced by firms and regulatory indices. Our results confirm the beneficial effects on output and employment of skill-biased tax reforms, measures that improve the skill composition of the labour force, R&D subsidies, raising competition in final goods market, increased financial market integration and measures that remove entry barriers in certain markets. The model also allows us to examine the adjustment path and the time lags involved before these benefits can be reaped.
79 citations
Posted Content•
01 Jan 2008
TL;DR: In this article, a DSGE model for an open economy and estimates it on euro area data using Bayesian estimation techniques was developed, and the model features nominal and real frictions, as well as financial frictions in the form of liquidity constrained households.
Abstract: This paper develops a DSGE model for an open economy and estimates it on euro area data using Bayesian estimation techniques The model features nominal and real frictions, as well as financial frictions in the form of liquidity constrained households The model incorporates active monetary and fiscal policy rules (for government consumption, investment, transfers and wage taxes) and can be used to analyse the effectiveness of stabilisation policies To capture the unit root character of macroeconomic time-series we allow for stochastic trend in TFP, but instead of filtering data prior to estimation, we estimate the model in growth rates and stationary nominal ratios
59 citations
Posted Content•
TL;DR: In this paper, a DSGE model for an open economy and estimates it on euro area data using Bayesian estimation techniques is developed, which incorporates active monetary and fiscal policy rules (for government consumption, investment, transfers and wage taxes).
Abstract: This paper develops a DSGE model for an open economy and estimates it on euro area data using Bayesian estimation techniques. The model features nominal and real frictions, as well as financial frictions in the form of liquidity constrained households. The model incorporates active monetary and fiscal policy rules (for government consumption, investment, transfers and wage taxes) and can be used to analyse the effectiveness of stabilisation policies. To capture the unit root character of macroeconomic time-series we allow for stochastic trend in TFP, but instead of filtering data prior to estimation, we estimate the model in growth rates and stationary nominal ratios.
28 citations
Posted Content•
TL;DR: In this paper, a micro-founded DSGE model with endogenous growth was used to analyse the macroeconomic impact of structural reforms in Europe, and the results confirmed the beneficial effects on output and employment of skill-biased tax reforms, measures that improve the skill composition of the labour force, R&D subsidies, raising competition in final goods market, increased financial market integration and removing entry barriers in certain markets.
Abstract: This paper describes the endogenous growth version of the QUEST III model and uses it to analyse the macroeconomic impact of various structural reform measures. This paper describes a micro-founded DSGE model with endogenous growth that is used to analyse the macroeconomic impact of structural reforms in Europe. The new QUEST III model is a useful tool for analysing the costs and benefits of reforms in terms of concrete and quantifiable policy measures, in particular fiscal policy instruments such as taxes, benefits, subsidies and education expenditures, administrative costs faced by firms and regulatory indices. Our results confirm the beneficial effects on output and employment of skill-biased tax reforms, measures that improve the skill composition of the labour force, R&D subsidies, raising competition in final goods market, increased financial market integration and measures that remove entry barriers in certain markets. The model also allows us to examine the adjustment path and the time lags involved before these benefits can be reaped.
1 citations