01877cas a2200253 a 4500 AALejournalIMF000677 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451853575 1018-5941 BD-DhAAL BD-DhAAL Masson, Paul. Liability-Creating Versus Non-Liability-Creating Fiscal Stabilization Policies : Ricardian Equivalence, Fiscal Stabilization, and EMU / Paul Masson, Tamim Bayoumi. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper looks at theoretical and empirical issues associated with the operation of fiscal stabilizers within an economy. It argues that such stabilizers operate most effectively at a national, rather than local, level. As differing cycles across regions tend to offset each other for the country as a whole, national fiscal stabilizers are not associated with the same increase in future tax liabilities for the region as local ones. Accordingly, the negative impact from the Ricardian effects associated with these tax liabilities is smaller. Empirical work on data across Canadian provinces indicates that local stabilizers are only 1/3 to 1\2 as effective as national stabilizers that create no future tax liability. Mode of access: Internet Bayoumi, Tamim. IMF Working Papers; Working Paper ; No. 1998/112 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/112/001.1998.issue-112-en.xml IMF e-Library