A NEW OPEN MACROECONIMICS MODEL WITH A DEBT-FINANCED TAX REDUCTION

• Main Authors: Yen-Chung, Chen, 陳彥中
• Other Authors: HU, CHUN-TIEN
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/15755905763268846535

碩士 === 國立臺北大學 === 經濟學系 === 97 === In this thesis，we tried to modify the New Open Macroeconomics model of government debt provided by Ganelli(2005).We assuming that domestic and foreign goods markets are segmented. Domestic (foreign) agents are unable to buy the domestically produced good in the foreign (home) country. The monopolistically competitive firm has the ability to engage in price discrimination by setting domestic currency price for domestic sales that differ from the price that it sets for export. Three major conclusions of this thesis are as follows: (1) In the short run, the Debt-financed tax cut policy will worsen the net financial position of the home country relative to the foreign country、lead to a appreciation of home currency 、raise the domestic consumption relative to foreign consumption, but the domestic output relative to foreign output is unchanged. (2) In the long run, the Debt-financed tax cut policy will lower the domestic consumption relative to foreign consumption but raise the domestic output relative to foreign output. Home currency will depreciate. (3) The Debt-financed tax cut policy has an ambagious welfare effect for the generation alive. But the Debt-financed tax cut policy will lower the welfare of the generation born in the future.