Relevance of the fiscal-policy setup in the analysis of macroprudential and ex-post financial crisis interventions

Borradores de Economia
Number: 
945
Published: 
Classification JEL: 
E62, F34, F41, H23, D62
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

The most recent

Juliana Jaramillo-Echeverri, Adriana Sofía Rodríguez
Gaurav Khanna, Carlos Alberto Medina-Durango, Anant Nyshadham, Daniel Ramos-Menchelli, Jorge Andrés Tamayo-Castaño, Audrey Tiew

In a previous paper (Parra-Polania and Vargas, 2015) we modify the ?nancial constraint of a very standard model to incorporate the fact that international lenders take into account that taxes (or subsidies) a¤ect borrowers?income available for debt repaym