Monetary and Fiscal Issues

Paper Session

Saturday, Jan. 7, 2017 2:30 PM – 4:30 PM

Sheraton Grand Chicago, Arkansas
Hosted By: Chinese Economic Association in North America & American Economic Association
  • Chair: Gary Hansen, University of California-Los Angeles

The Macroeconomic Effects of Public Employment

Juin-Jen Chang
,
Academia Sinica
Hsieh-Yu Lin
,
Academia Sinica
Nora Traum
,
North Carolina State University
Shu-Chun S. Yang
,
National Sun Yat-Sen University

Abstract

To be added.

Reforming Medicaid Long Term Care Insurance

Elena Capatina
,
University of New South Wales
Gary Hansen
,
University of California-Los Angeles
Minchung Hsu
,
National Graduate Institute for Policy Studies

Abstract

To be added.

Incentive Compatibility as a Nonnegative Martingale

Yunmin Chen
,
Academia Sinica
YiLi Chien
,
Federal Reserve Bank of St. Louis
C.C. Yang
,
Academia Sinica

Abstract

This paper considers a dynamic Mirrleesian economy and decomposes agents' lifetime incentive compatibility (IC) constraints into a sequence of temporal ones. We encode the frequency and severeness of these temporal IC constraints by their associated Lagrange multipliers, showing that the accumulation of the Lagrange multipliers on the consumption part is a nonnegative martingale. It is emphasized that, distinct from the extant literature, this martingale property is derived directly from the IC constraints and so is independent of the optimization of the social planning problem. We apply our finding to (i) the characterization of constrained efficient intertemporal wedges in the aggregate, and (ii) the extension of
the so-called immiseration to an environment more general than the extant literature.

Regional Real Exchange Rate Dynamics and Fiscal Policy in China

Martin Berka
,
University of Auckland
Yu-Chin Chen
,
University of Washington

Abstract

To be added.
Discussant(s)
Richard M. H. Suen
,
University of Leicester
John Jones
,
State University of New York-Albany
Yi-Chan Tsai
,
National Taiwan University
Huixin Bi
,
Federal Reserve Bank of Kansas City
JEL Classifications
  • E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
  • H0 - General