A Simulation Model of Macroeconomic of Deficit

P. Duguay and Y. Rabeau

Cahiers de recherche from Universite de Montreal, Departement de sciences economiques

Abstract: In This Paper We Present a Closed Version of a Macroeconomic Simulation Model. We Use This Model to Analyse the Effect of an Increase in the Government Deficit on the Short Run Behaviour of the Economy and on Its Steady State Level. As Long As Households Do Not Fully Discount Future Taxes, We Find That There Is a Significant Resource Crowding-Out Effect in the Long Run Associated with an Increase in Deficit. These Results Suggest That the Short Run Gains From Stabilization Measures Are Small Compared to the Negative Effect on Potential Output.

Keywords: Macroeconomics; Models; Economic Policy; Budgetary Policy; Growth Models; Simulation (search for similar items in EconPapers)
Pages: 38P. pages
Date: 1987
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:mtl:montde:8707

Access Statistics for this paper

More papers in Cahiers de recherche from Universite de Montreal, Departement de sciences economiques Contact information at EDIRC.
Bibliographic data for series maintained by Sharon BREWER ().