| Tekijä: | Razin, A. |
| Otsikko: | Fiscal policies and the integrated world stock market |
| Lehti: | Journal of International Economics
1990 : AUG, VOL. 29:1-2, p. 109-122 |
| Asiasana: | FISCAL POLICY STOCK MARKETS STOCHASTIC PROCESSES WORLD ECONOMY GOVERNMENT EXPENDITURE PRIVATE SECTOR PRODUCTIVITY ECONOMIC INTEGRATION TAXATION |
| Kieli: | eng |
| Tiivistelmä: | A two-country stochastic model of an integrated world stock market is developed. Issues concerning the effects of tax and spending policies on savings, asset portfolios, and stock-market valuations are addressed. General conditions for government-finance neutrality under uncertainty are derived and the characteristics of the international trasmission of uncertain future spending policies are spelled out. They are shown to depend precisely on a transfer-problem criterion involving the government and the private-sector propensities to spend in different states of nature and on the cross-country correlations between shocks to productivity and public spending. |
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