scholarly journals Impact of fiscal integration on eurozone members (The case of Slovakia)

2021 ◽  
Vol 8 (1) ◽  
pp. 100-109
Author(s):  
Lukáš Burian ◽  
Eva Muchová
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Cge Model ◽  
Fiscal Policies ◽  
Member States ◽  
Asymmetric Shocks ◽  
History Of ◽  
Policy Measures

The eurozone is both a unique project and an unprecedented case in the history of monetary unions. It has the characteristic of a single monetary policy but with sixteen national fiscal policies. The national fiscal policy measures that are aimed at compensating for the absence of a more complete fiscal union have been orientated mainly toward domestic fiscal policy and follow domestic fiscal policy discipline. The aim of the paper is to outline polemical views on fiscal integration, identify potential forms of deeper fiscal integration and simulate its impact on the integration of the Slovak economy using the computable general equilibrium (CGE) model. The collected evidence shows that either deeper fiscal integration taking the form of transfers or a common European tax would be beneficial for the eurozone Member States. Member States would thus have a tool to address unexpected developments in and asymmetric shocks to the eurozone.

scholarly journals ANALISIS KEBIJAKAN FISKAL DAN IMPLIKASINYA KEPADA PEREKONOMIAN INDONESIA: ANALISIS KESEIMBANGAN UMUM

2020 ◽  
Vol 5 (2) ◽  
Author(s):  
Wawan Hermawan
Keyword(s):  
Climate Change ◽  
Fiscal Policy ◽  
General Equilibrium ◽  
Greenhouse Gases ◽  
Computable General Equilibrium ◽  
Global Climate ◽  
Household Wealth ◽  
Fiscal Policies ◽  
Role Of Government ◽  
The Impact

The economy cannot be separated from the role of government spending in stimulating the economy. Fiscal policy is government’s tool to intervene in theeconomy, could change for the better economy or even make the economy into a recession. On the other hand, economic activity over the impact of greenhouse gas contribution, so the impact on global climate change. Therefore, a certain sectorspecific fiscal policies have considerable impact in influencing greenhouse gases. This study aims to provide an analysis of fiscal policy scenarios that can affect greenhouse gases, so that could explain what sector-specific fiscal policies that can increase the risk of climate change. This research uses the model of Computable General Equilibrium (CGE) based fiscal policy held by the Ministry of Finance of the Republic of Indonesia named AGEFIS (Applied General Equilibrium Model for Fiscal). The scenario is to decrease fosil fuel subsidy that can produce CO2 emision. The results shows that decreasing fossil fuel subsidies can reduce the CO2 emission, but with high consequences. The consequences are the economic growth seen to fall, household wealth declined and the real consumption levels decrease.

scholarly journals The Issue of Macroeconomic Closure Revisited and Extended

2016 ◽  
Vol 66 (1) ◽  
pp. 1-31
Author(s):  
Ernő Zalai ◽  
Tamás Révész
Keyword(s):  
General Equilibrium ◽  
Open Economy ◽  
Computable General Equilibrium ◽  
Statistical Data ◽  
Competitive Equilibrium ◽  
Numerical Models ◽  
Cge Model ◽  
Sector Model ◽  
Cge Models ◽  
Policy Simulations

Léon Walras (1874) had already realised that his neo-classical general equilibrium model could not accommodate autonomous investments. In the early 1960s, Amartya Sen analysed the same issue in a simple, one-sector macroeconomic model of a closed economy. He showed that fixing investment in the model, built strictly on neo-classical assumptions, would make the system overdetermined, and thus one should loosen some neo-classical conditions of competitive equilibrium. He analysed three not neo-classical “closure options”, which could make the model well-determined in the case of fixed investment. His list was later extended by others and it was shown that the closure dilemma arises in the more complex computable general equilibrium (CGE) models as well, as does the choice of adjustment mechanism assumed to bring about equilibrium at the macro level. It was also illustrated through several numerical models that the adopted closure rule can significantly affect the results of policy simulations based on a CGE model. Despite these warnings, the issue of macro closure is often neglected in policy simulations. It is, therefore, worth revisiting the issue and demonstrating by further examples its importance, as well as pointing out that the closure problem in the CGE models extends well beyond the problem of how to incorporate autonomous investments into a CGE model. Several closure rules are discussed in this paper and their diverse outcomes are illustrated by numerical models calibrated on statistical data. First, the analyses are done in a one-sector model, similar to Sen’s, but extended into a model of an open economy. Next, the same analyses are repeated using a fully-fledged multi-sectoral CGE model, calibrated on the same statistical data. Comparing the results obtained by the two models it is shown that although they generate quite similar results in terms of the direction and — to a somewhat lesser extent — of the magnitude of change in the main macro variables using the same closure option, the predictions of the multi-sectoral CGE model are clearly more realistic and balanced.

Interactive effects between monetary policy and fiscal policy based on dynamic stochastic general equilibrium model

2020 ◽  
pp. 1-12
Author(s):  
Ying Xie
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
General Equilibrium ◽  
Equilibrium Model ◽  
Control Policy ◽  
Dynamic Stochastic General Equilibrium ◽  
Economic Effects ◽  
Interactive Effects ◽  
Supply Side ◽  
Dynamic Stochastic

From the beginning to the end, monetary policy has focused too much on the control of the supply side. At present, the single supply-based monetary policy is ineffective. Therefore, it is urgent to change the current single direct supply-side regulation and control policy and replace it with a non-single and indirect control policy that combines supply and demand. Based on machine learning algorithms, this paper constructs a monetary policy analysis model based on dynamic stochastic general equilibrium methods to analyze the interactive effects of monetary policy and other policies. Moreover, this paper uses the dynamic stochastic general equilibrium model to simulate and analyze the economic effects of fiscal policy. In addition, this paper compares the economic effects of monetary policy and other policies and conducts verification and analysis through actual data. The obtained results show that the model constructed in this paper achieves the expected effect.

scholarly journals Relative Effectiveness of Monetary and Fiscal Policies on Output Stabilization in Developing Countries: Evidence from Rwanda

2017 ◽  
Vol 10 (1) ◽  
pp. 220
Author(s):  
Kabanda Richard ◽  
Peter W. Muriu ◽  
Benjamin Maturu
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Relative Effectiveness ◽  
Variance Decomposition ◽  
Var Model ◽  
Fiscal Policies ◽  
Impulse Responses ◽  
Exogenous Variables ◽  
Output Stabilization ◽  
The Government

The aim of this study was to explain the relative effectiveness of monetary and fiscal policies in explaining output in Rwanda. The study used a sample of quarterly data for the period 1996-2014. Applying a recursive VAR, the study used 12 variables, including 5 endogenous and 7exogenous variables to the benchmark model and other two specifications were attempted to capture the true contribution of monetary and fiscal policies to variations in nominal output. Obtained results using impulse responses and variance decomposition provide evidence that monetary policy is more effective than fiscal policy in explaining changes in nominal output in Rwanda. In addition, monetary policy explains better output when the VAR model contains domestic exogenous variables than when they are not included, suggesting the relevance of including domestic exogenous variables in VAR specification of monetary and fiscal policies effectiveness on economic variables. Another suggestion is that in order to achieve higher growth, the government of Rwanda should rely more on monetary policy as compared to fiscal policy.

scholarly journals Economic Growth, Policies and Influencing Factors: The Case of Albania

2016 ◽  
Vol 4 (1) ◽  
pp. 107
Author(s):  
Eleni Vangjeli ◽  
Anila Mancka
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Empirical Analysis ◽  
Influencing Factors ◽  
Fiscal Policies ◽  
The Government ◽  
High Level ◽  
The Empirical Analysis

Monetary and fiscal policies are two policies that the government could use to keep a high level of growth, with a low inflancion. Fiscal policy has its initial impact on the stock market, while monetary policy in market assets. But, given that the goods and active markets are closely interrelated, both policies, monetary as well as fiscal have impact on the economy, increasing the level of product through the reduction of interest rates. In our paper we will show how functioning monetary and fiscal policies. But also in our paper we will analyze the different factors which have affected the economic growth of the country. The focus of our study is the graphical and empirical analysis of economic growth, policies and influencing factors. For the empirical analysis we have used data on the economic growth in Albania for 1996– 2014.

scholarly journals Tourism taxes and negative externalities in tourism in australia: A CGE approach

2013 ◽  
Vol 10 (4) ◽  
pp. 200-214
Author(s):  
Ranjith Ihalanayake
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
International Tourism ◽  
Cge Model ◽  
Negative Externalities ◽  
Economic Activities ◽  
Long Run ◽  
Tourism Sector ◽  
Australian Economy ◽  
Short Run

In this paper we analyse general equilibrium effects of an increase in a tourism tax which we hypothetically designed to internalise negative externalities of international tourism in Australia. Several simulations were carried out using a computable general equilibrium (CGE) model of the Australian economy. The simulations were carried out assuming two different economic environments, the short-run and the long-run. The simulation results suggest that due to an increase in tourism taxes, the international tourism sector tends to contract while the other sectors expand. Overall, an increase in tourism taxes appears to be welfare improving in the long-run though it generates a marginal contraction in overall economic activities in the short run.

scholarly journals DAMPAK KERJA SAMA PERDAGANGAN INDONESIA DENGAN EURASIAN ECONOMIC UNION (EAEU) TERHADAP PEREKONOMIAN INDONESIA

2018 ◽  
Vol 12 (2) ◽  
pp. 161-180
Author(s):  
Deky Paryadi ◽  
Aziza Rahmaniar Salam
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Cge Model ◽  
Eurasian Economic Union ◽  
Comparative Advantages ◽  
Vegetable Foodstuffs ◽  
Economic Union ◽  
The Impact ◽  
Eurasian Region ◽  
Elimination Scheme

 Abstrak Kawasan Eurasia merupakan wilayah yang penting secara geopolitik dan geostrategi bagi perdagangan Indonesia. Melihat potensi yang dimiliki oleh negara-negara yang tergabung dalam Eurasian Economic Union (EAEU), Indonesia diharapkan dapat memanfaatkan peluang yang terbuka. Penelitian ini bertujuan untuk mengetahui potensi daya saing komoditas serta dampak kerja sama perdagangan Indonesia-EAEU. Metode analisis yang digunakan adalah Trade Complementary Index (TCI), Revealed Symetric Comparative Advantages (RSCA) dan Computable General Equilibrium (CGE) model dengan data dasar GTAP versi 9 menggunakan enam simulasi. Berdasarkan analisis TCI, tingkat kesesuaian ekspor EAEU terhadap struktur impor Indonesia lebih tinggi dibandingkan ekspor Indonesia terhadap struktur impor EAEU. Dengan melihat dampak kerja sama perdagangan Indonesia-EAEU terhadap makroekonomi Indonesia, penurunan tarif bea masuk sebesar 50% untuk seluruh produk Indonesia dan EAEU merupakan alternatif kebijakan terbaik. Indonesia perlu menjajaki kemungkinan kerja sama dengan EAEU dengan pendekatan berupa eliminasi 50% pada seluruh pos tarif secara bertahap. Selain itu, disarankan Indonesia fokus pada komoditas yang memiliki daya saing di pasar EAEU yaitu sektor animal; vegetable; foodstuffs; plastics/ rubber; raw hides; woods; textile; stone/glass; machinery; dan transportation.AbstractThe Eurasian region is an important area for Indonesia in term of geopolitic and geostrategy. Due to the economic potential of EAEU countries, Indonesia must take advantage of it. This study aims to determine the potential competitiveness of commodities and the impact of trade cooperation between Indonesia-EAEU. Methods used in this study were Trade Complementary Index (TCI), Revealed Symetric Comparative Advantages (RSCA) and Computable General Equilibrium (CGE) model utilizing basic data of GTAP version 9 of six simulations. By using TCI method it was found that the comformity level of EAEU's export to Indonesia's import structure is higher than Indonesia's exports to the EAEU import structure. Looking at the impact of Indonesia-EAEU trade cooperation on Indonesia’s economy, tariff reduction of 50% for all Indonesian products and EAEU is the best policy alternative for Indonesia. Therefore, It is a must to Indonesia to explore the possibility of cooperation with EAEU with a 50% elimination scheme gradually to all tariff lines. Indonesia should also focus on commodities which have competitiveness in EAEU market i.e. animal; vegetable; foodstuffs; plastics/rubber; raw hides; woods; textile; stone/glass; machinery; and transportation.

scholarly journals General Equilibrium Effects of Lower Labor Tax Burden in Croatia

2016 ◽  
Vol 19 (s1) ◽  
pp. 1-14 ◽  
Author(s):  
Ozana Nadoveza ◽  
Tomislav Sekur ◽  
Marija Beg
Keyword(s):  
Sensitivity Analysis ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Tax Burden ◽  
Cge Model ◽  
Policy Changes ◽  
Domestic Production ◽  
Labor Tax ◽  
Endogenous Variables ◽  
Cge Modeling

AbstractThis paper examines the effects of lower labor tax burden in Croatia by using Computable general equilibrium (CGE) model. It is a 5-sector (households, firms, government, investors and foreigners) model and economy is disaggregated on three highly aggregated sectors. One of the major advantages of CGE modeling is the evaluation of the overall effects of policy changes, shocks and reforms in the economy. We do this by lowering taxes on labor and simulating changes of all endogenous variables in the model simultaneously. Lastly, we provide sensitivity analysis results. Our results suggest that it is possible to encourage domestic production by reducing taxes on labor, but the potential effects on unemployment should be revised as to get more accurate estimates.

scholarly journals Zero-rating food in South Africa: A computable general equilibrium analysis

2004 ◽  
Vol 7 (3) ◽  
pp. 521-531 ◽  
Author(s):  
M Kearney ◽  
J H Van Heerden
Keyword(s):  
General Equilibrium ◽  
Financial Services ◽  
Computable General Equilibrium ◽  
Positive Impact ◽  
Equilibrium Analysis ◽  
Cge Model ◽  
Percentage Increase ◽  
General Equilibrium Analysis ◽  
Revenue Sources ◽  
Poor Households

Zero-rating food is considered to alleviate poverty of poor households who spend the largest proportion of their income on food.  However, this will result in a loss of revenue for government.  A Computable General Equilibrium (CGE) model is used to analyze the combined effects on zero-rating food and using alternative revenue sources to compensate for the loss in revenue.  To prohibit excessively high increases in the statutory VAT rates of business and financial services, increasing direct taxes or increasing VAT to 16 per cent, is investigated.  Increasing direct taxes is the most successful option when creating a more progressive tax structure, and still generating a positive impact on GDP.  The results indicate that zero-rating food combined with a proportional percentage increase in direct taxes can improve the welfare of poor households.  

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