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Temporary Partial Expensing in a General-Equilibrium Model

Overview In recent years, the use of forward-looking general-equilibrium models to analyze the conduct of monetary policy has become a commonplace of the macroeconomics literature. By contrast, considerably less progress has been made in employing these models to examine questions related to fiscal policy. This paper incorporates a nominal tax system into an otherwise standard sticky-price monetary business cycle (MBC) model, and uses the resulting framework to examine the effect of a temporary partial expensing allowance on investment expenditures, real activity, and government revenues.

Further White Paper Details
Publisher	Federal Reserve Board	File Format	PDF
Date Published	April 2005	Downloads	6
Format	White Papers
Topics	Financial Management

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