 | Assistant Professor of Economics Verified email at cornell.edu Cited by 186 |
K Mertens… - The Economic Journal, 2010 - Wiley Online Library
We are grateful for comments from an anonymous referee, the editor of this Journal,
Domenico Giannone, Jonas Fisher, Roberto Perotti and seminar participants at the RES
2009 Conference and the 4th CSEF-IGIER Conference on Economics and Institutions. ...
We provide empirical evidence on the dynamics effects of tax liability changes in the United
States. We distinguish between surprise and anticipated tax changes using a timing-
convention. We document that pre-announced but not yet implemented tax cuts give rise ...
K Mertens… - Review of Economic Dynamics, 2011 - Elsevier
This paper evaluates the extent to which a DSGE model can account for the impact of tax
policy shocks. We estimate the response of macroeconomic aggregates to anticipated and
unanticipated tax shocks in the US and find that unanticipated tax cuts have persistent ...
C Kascha… - Journal of Economic Dynamics and Control, 2009 - Elsevier
Can long-run identified structural vector autoregressions (SVARs) discriminate between
competing models in practice? Several authors have suggested SVARs fail partly because
they are finite-order approximations to infinite-order processes. We estimate vector ...
Abstract: We provide empirical evidence on the effects of tax liability changes in the United
States. We make a distinction between surprise and anticipated tax shocks. Surprise tax cuts
give rise to a large boom in the economy. Anticipated tax liability tax cuts are instead ...
Abstract We examine the impact of fiscal policy interventions in an environment where the
short term nominal interest rate is at the zero bound. In the basic New Keynesian model in
which the monetary authority operates a Taylor rule, globally multiple equilibria arise, ...
K Mertens - Journal of Monetary Economics, 2008 - Elsevier
Establishing the existence and nature of changes in the conduct and transmission of
monetary policy is key in understanding the remarkable macroeconomic performance of the
US since the mid-1980s. This paper presents evidence on a phenomenon of ...
B Gruss… - 2009 - cadmus.eui.eu
We estimate regime switching models for emerging market interest rates and embed the
obtained nonlinear dynamics in a small open economy model with a financial friction. We
show that the presence of an infrequent regime characterized by high level/high volatility ...
This paper presents a flexible-price small open economy model with a “peso problem” in
productivity states. Agents rationally adjust their beliefs about future productivity growth after
the arrival of news. A downward revision of expectations triggers Sudden Stop, together ...
[CITATION] VEmpirical Evidence on The Aggregate Effects of Anticipated and Unanticipated US Tax Policy ShocksV
K Mertens… - Centre for Economic Policy Research Discussion …, 2009
Establishing the existence and nature of changes in the conduct and transmission of
monetary policy is key in understanding the remarkable macroeconomic performance of the
US since the mid 1980s. This paper presents evidence on a phenomenon of ...
Abstract: A number of empirical studies find that permanent technological improvements
give rise to a temporary drop in hours worked. This finding seriously questions the
technology-driven business cycle hypothesis. In this paper we argue that it is important to ...
Abstract: We study liquidity trap dynamics driven by nonfundamental shifts in expectations in
a model with nominal rigidities, housing, credit frictions and a Taylor rule. Highly leveraged
borrowing through nominal debt backed by real estate collateral greatly magnifies the ...
[CITATION] forthcoming).“Empirical Evidence on the Aggregate Effects of Anticipated and Unanticipated US Tax Policy Shocks”
K Mertens… - American Economic Journal: Economic Policy
K Mertens… - Manuscript, Cornell University and University …, 2011 - econ.psu.edu
We describe a methodology that integrates the narrative approach to the identification of
macroeconomic shocks into existing structural VAR settings while allowing for measurement
error in the narrative measures of the shocks of interest. We apply our methodology to the ...
K Mertens… - The American Economic Review, 2011 - ingentaconnect.com
Abstract: We show that the financial accelerator may be very large in a liquidity trap. We
study a sticky price model with real estate and a financial friction specified as a collateral
constraint. Expectations can lead the economy to a self-fulfilling liquidity trap equilibrium ...
[CITATION] lThe Aggregate Effects of Anticipated and Unanticipated US Tax Policy Shocks: Theory and Empirical Evidence
K Mertens… - 2008 - mCornell University Mimeo
K Mertens… - manuscript, Cornell University and …, 2011 - arts.cornell.edu
Abstract Existing empirical estimates of US nationwide tax multipliers vary from close to zero
to very large. Using narrative measures as proxies for structural shocks to total tax revenues
in an SVAR, we estimate tax multipliers at the higher end of the range: around two on ...
K Mertens… - Computer Codes, 2010 - econpapers.repec.org
Related works: Journal Article: Understanding the Aggregate Effects of Anticipated and Unanticipated
Tax Policy Shocks This item may be available elsewhere in EconPapers: Search for items with
the same title. ... This site is part of RePEc and all the data displayed here is part of the ...
[CITATION] Fiscal Policy in a Small Open Economy with Financial Friction
K Mertens - 2004
The composition and timing of the fiscal stimulus is a major concern for policymakers. This
column presents research showing that anticipated tax cuts result in reduced economy
activity before they take effect. During the current downturn, that constitutes a strong ...
K Mertens… - The Economic Journal, 2010 - res.org.uk
Empirical estimates of the impact of government spending shocks disagree on central issues
such as the size of output multipliers and the responses of consumption and the real wage.
One explanation for the disagreement is that fiscal shocks are often anticipated. Due to ...
K Mertens… - 2011 - arts.cornell.edu
In this appendix, we describe the decomposition of the total tax liabilities changes of various
legislative actions as recorded by Romer and Romer (2009) and after eliminating those
implemented more than a quarter after their legislation as in Mertens and Ravn (2011) into ...
We examine the impact of fiscal policy interventions in an environment where the short term
nominal interest rate is at the zero bound. In the basic New Keynesian model in which the
monetary authority operates a Taylor rule, globally multiple equilibria arise, some of which ...
We provide empirical evidence on the effects of tax liability changes in the United States. We
make a distinction between" surprise" and" anticipated" tax shocks. Surprise tax cuts give
rise to a large boom in the economy. Anticipated tax liability tax cuts are instead ...
Figure A-1 presents two alternative time series specifications. In the first row, results are
shown when a linear-quadratic time trend is added to the benchmark specification. The
second row of figure A-1 depicts the output effects when all the variables are included in ...
This paper estimates the dynamic effects of changes in taxes in the United States. We
distinguish between the effects of changes in personal and corporate income taxes using a
new narrative account of federal tax liability changes in these two tax components. We ...
Figure 1 plots time series for per capita (adult) real output, per capita real consumption, per
capita investment and per capita hours worked for the US over the sample 1948Q1: 2006Q4.
1 Note that there is trend growth in output, consumption and investment. At shorter ...
A number of empirical studies find that permanent technological improvements give rise to a
temporary drop in hours worked. This finding seriously questions the technology-driven
business cycle hypothesis. In this paper we argue that it is important to control for ...
We evaluate the extent to which a dynamic stochastic general equilibrium model can
account for the impact of" surprise" and" anticipated" tax shocks estimated from US time-
series data. In US data, surprise tax cuts have expansionary and persistent effects on ...
t= 0 βtu (Ct, Lt), 0< β< 1(1) where Ct is commodity consumption in period t and Lt is leisure in
period t. Each household has a time endowment of one unit, which can be allocated for
leisure Lt or work Nt. u (C, L) is the momentary utility function or felicity function. Assume ...
In this chapter we will focus on Vector Autoregressions (VARs), a class of statistical models
that capture the statistical properties of many macroeconomic time series without relying
explicitly on a particular economic theory. VARs are reduced form models, and it is ...
We study liquidity trap dynamics driven by nonfundamental shifts in expectations in a model
with nominal rigidities, housing, credit frictions and a Taylor rule. Highly leveraged
borrowing through nominal debt backed by real estate collateral greatly magnifies the ...
K Mertens… - EconomicDynamics Newsletter, 2011 - ideas.repec.org
Karel Mertens is an Assistant Professor at Cornell University. Karel's research has been
concerned with monetary and fiscal policy. Morten O. Ravn is a Professor of Economics at
University College London and a Research Fellow of the Centre for Economic Policy ...
[CITATION] ECON 614 MACROECONOMIC THEORY II: Models with Nominal Rigidities
Empirical estimates of the impact of government spending shocks disagree on central issues
such as the size of output multipliers and the responses of consumption and the real wage.
One explanation for the disagreement is that fiscal shocks are often anticipated. Due to ...
The previous chapter presented models with no role for money and no predictions for
nominal variables. In this chapter we will analyze models that incorporate monetary factors
that allow for the analysis of price-level determination, inflation and monetary policy and ...
We provide empirical evidence on the dynamic effects of tax liability changes in the United
States. We distinguish between surprise and anticipated tax changes using a timing-
convention. We document that pre-announced but not yet implemented tax cuts give rise ...
Abstract: This paper estimates the dynamic effects of changes in taxes in the United States.
We distinguish between the effects of changes in personal and corporate income taxes
using a new narrative account of federal tax liability changes in these two tax components. ...
K Mertens - 2007 - cadmus.eui.eu
The first chapter,'How the Removal of Deposit Rate Ceilings Has Changed Monetary
Transmission in the US: Theory and Evidence'is concerned with US monetary history and
the impact of institutional changes in the late 1970s and early 1980s on the monetary ...
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