Fiscal Policy And the Nominal Term Premium

Roman Horvath, Lorant Kaszab and Aleš Maršál

Journal of Money, Credit and Banking, 2022, vol. 54, issue 2-3, 663-683

Abstract: We estimate a New Keynesian model on postwar U.S. data with the generalized method of moments using either constant or time‐varying debt and distortionary labor income taxes. We show that accounting for government debt and distortionary taxes help the New Keynesian model match the level of the nominal term premium with a lower relative risk‐aversion than typically found in the literature.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1111/jmcb.12858

Related works:
Working Paper: Fiscal Policy and the Nominal Term Premium (2019)
Working Paper: Fiscal Policy and the Nominal Term Premium (2019)
Working Paper: Fiscal Policy and the Nominal Term Premium (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:54:y:2022:i:2-3:p:663-683

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().