The Influence of Aggregate Demand Elasticity on the Federal Budget Deficit

2013 ◽  
Author(s):  
Ben L. Kyer ◽  
Gary E. Maggs
Keyword(s):  
Budget Deficit ◽  
Aggregate Demand ◽  
Federal Budget ◽  
Demand Elasticity ◽  
Federal Budget Deficit

scholarly journals APPROBATION OF THE FEDERAL BUDGET DEFICIT MANAGEMENT PORTFOLIO MODEL

2019 ◽  
Vol 29 (5) ◽  
pp. 589-595
Author(s):  
D.M. Mikhaylov
Keyword(s):  
Budget Deficit ◽  
Federal Budget ◽  
Fiscal Year ◽  
Model Parameters ◽  
Federal Law ◽  
Planning Period ◽  
Economic Agents ◽  
Federal Budget Deficit ◽  
Macroeconomic Uncertainty ◽  
The Impact

The article tested a modification of the G. Markowitz’s model for the task of managing the federal budget deficit in the formation of the federal law about the federal budget for the next fiscal year and for the planning period. The logical-mathematical method of empirical research was used in modeling with the use of theoretical conclusions in the sphere of public finance. The possibility of practical use of such a model is justified by the given assessment of the model parameters based on actual data for 2010-2017. Based on historical data, restrictions on the marginal volume of revenue planning from deficit financing sources are assumed. Because of macroeconomic uncertainty potential revenues are projected using interval coefficients. The effectiveness of the federal budget deficit management portfolio constructed according to the model is proposed to be compared with the deficit management parameters laid down in the federal budget in 2018. In addition, based on the assessment of the impact of diversification and expectations of economic agents (in the model presented as "transaction costs") the article discussed the feasibility of using the model in planning the management of the federal budget deficit. Taking into account the empirical results it is concluded that ignoring the expectations of the planning period in the formation of the federal budget deficit management strategy can lead to significant losses in revenues.

A Nation in Debt: Economists Debate the Federal Budget Deficit

1988 ◽  
Vol 55 (2) ◽  
pp. 520
Author(s):  
Randall G. Holcombe ◽  
Richard H. Fink ◽  
Jack C. High
Keyword(s):  
Budget Deficit ◽  
Federal Budget ◽  
Federal Budget Deficit

On the U.S. Budget Deficit Dilemma: Has Television Contributed?

1996 ◽  
Vol 40 (2) ◽  
pp. 77-85
Author(s):  
Ali F. Darrat ◽  
Bill P. Bowers
Keyword(s):  
Budget Deficit ◽  
Federal Budget ◽  
Policy Makers ◽  
Federal Budget Deficit ◽  
Alternative Measures ◽  
The Media ◽  
Fiscal Conservatism ◽  
Fast Evolution ◽  
The U.S

We advance several theoretical reasons for arguing that expansion in television viewership may have contributed to the recent escalation in the U.S. budget deficit. We then develop a multivariate model to test the validity of the hypothesis using alternative measures of television viewership. The empirical results could not reject our contention that the fast evolution of the U.S. television viewership since the early 1970s has significantly contributed to the escalating size of the federal budget deficit over and above the effects of several other possible macro determinants. This evidence provides some support to the claim that there exists a “liberal” bias within the media (particularly television) that undermines fiscal conservatism. Therefore, it appears advisable for policy-makers to take into account the role of television if they aspire to understand and ultimately control the mounting federal budget deficit.

The Impact of Budget Deficits on the Ex Ante Real Interest Rate Yield on Long–Term Treasury Notes in the USA

2014 ◽  
Vol 32 (1) ◽  
pp. 83-97
Author(s):  
Richard J. Cebula
Keyword(s):  
Interest Rate ◽  
Real Interest Rate ◽  
Budget Deficit ◽  
Federal Budget ◽  
Capital Inflows ◽  
Annual Data ◽  
Federal Budget Deficit ◽  
Ex Ante ◽  
Treasury Notes ◽  
The Impact

Abstract Using four decades of data, this exploratory empirical study adopts a loanable funds model to investigate the impact of the federal budget deficit in the U.S. on the Ex Ante real interest rate yield on ten-year Treasury notes. For the 40- year period 1973-2012, empirical estimation using quarterly data reveals that the Ex Ante real interest rate yield on ten-year U.S. Treasury notes was an increasing function of the Ex Ante real interest rate yield on Moody's Aaa-rated corporate bonds, the Ex Ante real interest rate yield on three-month Treasury bills, and the increase in per capita real GDP, while being a decreasing function of net capital inflows (as a percent of GDP) and the monetary base (as a percent of GDP). In addition, it is found that the federal budget deficit (as a percent of GDP) exercised a positive and statistically significant impact on the Ex Ante real interest rate yield on ten-year Treasury notes, a finding consistent in principle with a number of prior studies of various interest rate measures during shorter and earlier time periods. A robustness test using the Ex Ante real seven-year Treasury note yield and annual data supports these findings.

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