Short term gain, long term pain? Impact of New Zealand's fiscal stimulus: A dynamic general equilibrium analysis
Chris Schilling and
James Giesecke
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Chris Schilling: New Zealand Institute of Economic Research
No 2009/3, NZIER Working Paper from New Zealand Institute of Economic Research
Abstract:
In this report we use our new dynamic computable general equilibrium model to analyse the impact of the personal tax cuts, cuts to small business taxes, and infrastructure spending that have been announced since late last year. We have assumed in this paper that the Government will need to raise taxes after the economy recovers to deal with the projected budget deficits and worsening net Crown debt.
Keywords: CGE modelling; income taxes; personal; New Zealand; fiscal stimulus (search for similar items in EconPapers)
JEL-codes: C68 E62 H24 H25 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2009-05-13
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