Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
  1. Home
  2. Journals
  3. Macroeconomic Dynamics
  4. Volume 29
Journal Home
Refine listing

Refine listing

Access:
Publication date:

Actions for selected content:

Select all | Deselect all
  • View selected items
  • Export citations
  • Download PDF (zip)
  • Save to Kindle
  • Save to Dropbox
  • Save to Google Drive

Save Search

You can save your searches here and later view and run them again in "My saved searches".

Please provide a title, maximum of 40 characters.
Cancel
×
< Back to all issues

Volume 29 - 2025

Contents

Page 7 of 7

Articles

  • The multiplier in a small open economy two-agent New Keynesian model under alternative tax financing methods

  • Yongseung Jung
  • Published online by Cambridge University Press:
    18 July 2025, e121

  • This paper sets up a small open economy two-agent model and addresses the size of output multiplier of government spending associated with taxation either on constrained households or on unconstrained households. The paper shows that the tax financing rule matters to real resource allocations in the small open economy with flexible prices and equal tax burden at the steady state, contrasting to the finding of Monacelli and Perotti (2011) in closed economies. The output multiplier in open economies is larger than the multiplier in closed economies when taxes are levied on constrained households, while the reverse holds under taxations on unconstrained households.

Page 7 of 7