# 经济代写|宏观经济学代写Macroeconomics代考|EC4505

#### Doug I. Jones

Lorem ipsum dolor sit amet, cons the all tetur adiscing elit

couryes-lab™ 为您的留学生涯保驾护航 在代写宏观经济学Macroeconomics方面已经树立了自己的口碑, 保证靠谱, 高质且原创的统计Statistics代写服务。我们的专家在代写宏观经济学Macroeconomics代写方面经验极为丰富，各种代写宏观经济学Macroeconomics相关的作业也就用不着说。

• Statistical Inference 统计推断
• Statistical Computing 统计计算
• (Generalized) Linear Models 广义线性模型
• Statistical Machine Learning 统计机器学习
• Longitudinal Data Analysis 纵向数据分析
• Foundations of Data Science 数据科学基础
couryes™为您提供可以保分的包课服务

## 经济代写|宏观经济学代写Macroeconomics代考|Smoothing government spending

The opposite happens if there is a desire to smooth government spending over time. Consider, for example, a case where tax revenues are now exogenous, though maybe hit by exogenous shocks. This may capture important cases, such as those in which economies are heavily reliant on the proceeds from natural resources, on whose prices they may not have much influence. ${ }^3$ How should such an economy plan its spending profile?
To discuss this question imagine the case of a country where the government maximises
$$\int_0^{\infty}\left(\frac{\sigma}{1-\sigma}\right) g_t^{\frac{\sigma-1}{\sigma}} e^{-\rho t} d t$$
subject to the budget constraint:
$$\dot{b}_t=r b_t+\tau_t+\epsilon_t-g_t$$
where $b$ stands for government assets, plus the NPG condition that we omit for brevity. Notice that this is identical to our standard consumption optimisation in an open economy, and, therefore, we know that the government has a desire to smooth government expenditures over time. We assume, though, that the shock to income $\epsilon_t$ follows:
$$\epsilon_t=\epsilon_0 e^{-\delta t}$$
This embeds a full range of cases – for instance, if $\delta \rightarrow \infty$ then we have a purely transitory shock, but if $\delta \rightarrow 0$, the shock would be permanent.

Assuming, for simplicity, as we’ve done before, that $\rho=r$, the FOC for this problem is $\dot{g}=0$ : it is now government spending that should remain constant over time. This means that
$$g=r\left[b_0+\frac{\tau}{r}+\frac{\epsilon_0}{r+\delta}\right] \text {. }$$
Notice that the final two terms give the present discounted value of taxes and of the income shock. Using (18.33) in (18.35) (and allowing $b_0=0$ ):
$$\dot{b}_t=\frac{\delta}{r+\delta} \epsilon_t$$
Notice that if the shock is permanent $(\delta=0)$, the change in debt is zero, and government spending adjusts immediately to its new level. If shocks are transitory and positive then the government accumulates assets along the converging path. What is the implication of this result? That if the government wants to smooth its consumption, it will actually decrease its expenditures when hit by a negative shock. How persistent the shock is determines the impact on government expenditures. In other words, the desire to smooth this response somewhat weakens the countercyclical results we have discussed above.

## 经济代写|宏观经济学代写Macroeconomics代考|Summing up

If taxation is distortionary, then a government should endeavor to smooth the path of taxes as much as possible. That means that taxes respond fully to permanent changes in government expenditure, but only partially to transitory changes. The government borrows in bad times (when its expenditure is unusually high) and repays in good times (when its expenditure is unusually low).

If you think about it, this is exactly the same logic of consumption-smoothing, for the exact same reasons. But it has very important policy consequences: any extraordinary expenditure – e.g. a war, or a big infrastructure project – should be financed with debt, and not with taxes. The path followed by debt, however, ought to satisfy the solvency constraint; in other words, it must be sustainable.

This implies a countercyclical pattern for fiscal policy: you should run deficits when expenditure needs are unusually high, and compensate with surpluses when they are relatively low. This may interact with the business cycle as well: to the extent that spending needs go up in cyclical downturns (e.g. because of unemployment insurance payments), and the revenue base goes up when income goes up, the tax smoothing principle will suggest that deficits increase during recessions, and decrease when times are good. It doesn’t make sense to increase tax rates to deal with higher unemployment insurance needs.

Yet this is different from using fiscal policy as an aggregate demand management tool, which is often the sense in which one may hear the term countercyclical fiscal policy being deployed. That said, there is a clear complementarity between the two angles: running the optimal fiscal policy, from a tax smoothing perspective, will also operate in the right direction when needed for aggregate demand management purposes, to the extent that it has an effect on aggregate demand, as per the previous chapter.

# 宏观经济学代考

## 经济代写|宏观经济学代写Macroeconomics代考|Changes in government expenditures

$$\tau^{\prime}=\phi^{\prime} y=r d_0+g^H, \quad t \geq 0 .$$

## 经济代写|宏观经济学代写Macroeconomics代考|Countercyclical fiscal policy

$$\ell^{\prime}\left(\frac{\tau_t}{y_t}\right) \frac{1}{y_t}=\lambda,$$

## 有限元方法代写

tatistics-lab作为专业的留学生服务机构，多年来已为美国、英国、加拿大、澳洲等留学热门地的学生提供专业的学术服务，包括但不限于Essay代写，Assignment代写，Dissertation代写，Report代写，小组作业代写，Proposal代写，Paper代写，Presentation代写，计算机作业代写，论文修改和润色，网课代做，exam代考等等。写作范围涵盖高中，本科，研究生等海外留学全阶段，辐射金融，经济学，会计学，审计学，管理学等全球99%专业科目。写作团队既有专业英语母语作者，也有海外名校硕博留学生，每位写作老师都拥有过硬的语言能力，专业的学科背景和学术写作经验。我们承诺100%原创，100%专业，100%准时，100%满意。

## MATLAB代写

MATLAB 是一种用于技术计算的高性能语言。它将计算、可视化和编程集成在一个易于使用的环境中，其中问题和解决方案以熟悉的数学符号表示。典型用途包括：数学和计算算法开发建模、仿真和原型制作数据分析、探索和可视化科学和工程图形应用程序开发，包括图形用户界面构建MATLAB 是一个交互式系统，其基本数据元素是一个不需要维度的数组。这使您可以解决许多技术计算问题，尤其是那些具有矩阵和向量公式的问题，而只需用 C 或 Fortran 等标量非交互式语言编写程序所需的时间的一小部分。MATLAB 名称代表矩阵实验室。MATLAB 最初的编写目的是提供对由 LINPACK 和 EISPACK 项目开发的矩阵软件的轻松访问，这两个项目共同代表了矩阵计算软件的最新技术。MATLAB 经过多年的发展，得到了许多用户的投入。在大学环境中，它是数学、工程和科学入门和高级课程的标准教学工具。在工业领域，MATLAB 是高效研究、开发和分析的首选工具。MATLAB 具有一系列称为工具箱的特定于应用程序的解决方案。对于大多数 MATLAB 用户来说非常重要，工具箱允许您学习应用专业技术。工具箱是 MATLAB 函数（M 文件）的综合集合，可扩展 MATLAB 环境以解决特定类别的问题。可用工具箱的领域包括信号处理、控制系统、神经网络、模糊逻辑、小波、仿真等。

Days
Hours
Minutes
Seconds

# 15% OFF

## On All Tickets

Don’t hesitate and buy tickets today – All tickets are at a special price until 15.08.2021. Hope to see you there :)