IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/330919.html
   My bibliography  Save this paper

The Impacts of the Fiscal-Consolidation Policies in Developed Economies under the Free Trade Agreements

Author

Listed:
  • Oyamada, Kazuhiko

Abstract

The purpose of this study is to clarify the impacts of the fiscal-consolidation policies in developed economies when the economies are involved in an FTA, using a perfect-foresight dynamic AGE model of global trade. The model used in this paper assumes endogenous growth with public capital along with private capital, and can be used to answer questions when the response of intertemporal variables such as savings and investment are important, but also the structure of the global economy is relevant. The parameters and exogenous variables are calibrated assuming that the benchmark data is obtained from an economy in the stationary state. Simulations with the model revealed that the policies that decrease public capital, such as cutting in the public expenditures or abolition of taxes, may have a strong impacts on the global economy through trade, and would finally decelerate the economic growth. On the other hand, the countries that performed the policies might be better off if we focus on the welfare level that is defined by the private consumption.

Suggested Citation

  • Oyamada, Kazuhiko, 2001. "The Impacts of the Fiscal-Consolidation Policies in Developed Economies under the Free Trade Agreements," Conference papers 330919, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330919
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/330919/files/2599.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:330919. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.