The spenders-hoarders theory of capital accumulations, wealth distribution and fiscal policy

This paper proposes a simple OLG model which is consistent with the essential facts about consumer behavior, capital accumulation and wealth distribution, and yields some new and surprising conclusions about fiscal policy. By considering a society in which individuais are distinguished according to two characteristics, altruism and wealth preference, we show that those who in the long run hold the bulk of private capital are not so rnuch motivated by dynastic altruism as by preference for wealth. Two types of social segmentation can result with different wcalth distribution. To a large extcnt our results seem to fit reality better than those obtained with standard optimal growth models in which dynastic altruism ( or r ate o f impatience) is the only source of heterogeneity: overaccumulation can appear, public debt and unfunded pensions are not neutra!, estate taxation can improve the welfare of the top wealthy.

Fiscal policy contradiction: a perspective on Brazil and Mexico

The aim of this paper is to discuss the quality of fiscal policy in Brazil and Mexico and investigate whether fiscal policy influence is favorable to reduce the unemployment rate. Public spending, which has a positive effect on the level of employment when results in additional aggregate demand, may cause a negative effect on employment, if its financing depends on persistent high interest rates. Brazil and Mexico have engaged in a long effort to control public spending and to reduce the public deficit to zero. Does this policy bring a positive result to the economic activity no matter how actual public deficit has been financed? We select variables related to public budget as public sector borrowing requirements, taxes, public debt and others to form a data base. The fiscal institutional arrangement and the data allow us to evaluate the fiscal policy as a whole and to discuss the importance of credibility and reputation of the government.

Countercyclical fiscal policy: a review of the literature, empirical evidence and some policy proposals

Includes bibliography

Evolution of fiscal policy in the Caribbean: based on data for the period 1987-1996

Includes bibliography

Crisis, volatility and fiscal policy in Latin America

Includes bibliography

Indicators of fiscal policy: design and applications for Chile

Includes bibliography

Fiscal policy and the economic cycle in Chile

Includes bibliography

Fiscal policy and social protection in Chile

Includes bibliography

Fiscal policy and the commodities boom: the impact of higher prices for non-renewables in Latin America and the Caribbean

Includes bibliography

Fiscal policy and social protection

Includes bibliography

Fiscal policy in times of crisis: macroeconomic effects of the primary surplus

Includes bibliography

Brazil: an empirical study on fiscal policy transmission

Includes bibliography

Fiscal policy and integrated development

Includes bibliography