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Sponsored AI AM CLAUDE, A Beginner's Guide: Learn the basics of working with AI AI AM CLAUDE, A Beginner's Guide: Learn the basics of working with AI

Author

C. Végh

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Oct 2026

Procyclical Fiscal Policy and Asset Market Incompleteness

We develop a model of the joint behavior of optimal tax rates and government spending over the business cycle to explain procyclical fiscal policy in emerging markets. Our setup relies on financial frictions, which have been shown to be critical features of emerging markets, captured by various degrees of asset market...

Andrés Fernández, Daniel Guzmán-Girón, Ruy Lama et al. · 0 citations

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