Subtitle:

Raport Badawczy = Research Report ; RB/54/2016

Publisher:

Instytut Badań Systemowych. Polska Akademia Nauk ; Systems Research Institute. Polish Academy of Sciences

Place of publishing:

Warszawa

Description:

[1],164-183 pages ; 21 cm ; Bibliography p. 182-183

Abstract:

A monetary-fiscal game describing the interactions of the fiscal and monetary authorities is formulated and analyzed. A macroeconomic model for the Polish economy has been formulated on the basis of the concept of New Neoclassical Synthesis and respectively extended so as to accommodate the effects of fiscal policy. Several variants of the model have been estimated using statistical data for the Polish economy. It is assumed in the game that each party (monetary and fiscal) tries to achieve its own goal: the fiscal authority – the assumed GDP growth, and the monetary authority – an inflation level. The best response strategies of the authorities and the Nash equilibria are calculated and analyzed in two cases, namely when the decisions are made simultaneously and sequentially. The simulation results obtained indicate that when the authorities try to achieve independently their goals, in a general case the Nash equilibrium is not Pareto optimal. The best response strategies may lead to conflict escalation and to results that are not beneficial for both parties.

Relation:

Raport Badawczy = Research Report

Detailed Resource Type:

Report

Resource Identifier:

oai:rcin.org.pl:217526

Source:

RB-2016-54

Language:

eng

Language of abstract:

eng

Rights:

Creative Commons Attribution BY 4.0 license

Terms of use:

Copyright-protected material. [CC BY 4.0] May be used within the scope specified in Creative Commons Attribution BY 4.0 license, full text available at: ; -

Digitizing institution:

Systems Research Institute of the Polish Academy of Sciences

Original in:

Library of Systems Research Institute PAS

Projects co-financed by:

Operational Program Digital Poland, 2014-2020, Measure 2.3: Digital accessibility and usefulness of public sector information; funds from the European Regional Development Fund and national co-financing from the state budget.

Access:

Open