01858cas a2200277 a 4500 AALejournalIMF003987 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451863055 1018-5941 BD-DhAAL BD-DhAAL Muir, Dirk. A New-Open-Economy Macro Model for Fiscal Policy Evaluation / Dirk Muir, Douglas Laxton, Dennis Botman, Andrei Romanov. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (46 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 We develop a New-Open-Economy-Macro model in which Ricardian equivalence does not hold because of (i) distortionary labor and corporate income taxation; (ii) limited asset market participation; and (iii) because the overlapping-generations structure results in a disconnect between current and future generations. We consider a permanent increase in government debt following a cut in labor or corporate income taxes in a small and large open economy. We analyze the sensitivity of the results to the key structural parameters of the model and argue that under plausible assumptions there will be significant crowding-out effects associated with permanent increases in government debt. Mode of access: Internet Botman, Dennis. Laxton, Douglas. Romanov, Andrei. IMF Working Papers; Working Paper ; No. 2006/045 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/045/001.2006.issue-045-en.xml IMF e-Library