Fiscal policy and the nominal term premium

Kaszab, Lorant and Marsal, Ales 2013. Fiscal policy and the nominal term premium. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University.

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Abstract

Distortionary income taxation in a standard New Keynesian model substantially increases the nominal term-premium on long-term bonds relative to a model with lump-sum taxes. Also the empirical level of the nominal term premium can be matched with lower risk-aversion coefficient in case of a model with income taxes relative to a model with long-run inflation risks.

Item Type:	Monograph (Working Paper)
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Subjects:	H Social Sciences > HB Economic Theory
Publisher:	Cardiff University
Date of First Compliant Deposit:	30 March 2016
Last Modified:	08 Oct 2015 09:21
URI:	https://orca.cardiff.ac.uk/id/eprint/77999

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