Working Papers (Economics)
Items in this Collection
- 1Canadian Government Economic Policy
- 1Capital Gains
- 1Defined Benefit Pension
- 1Discount Rate
This study uses Monte Carlo methods to examine the impact on welfare of several types of commonly used fiscal rules. The simulations employ an expected intertemporal welfare function and the parameters from a three-variable structural VAR estimated using data for sixteen European countries. The...
Does a discount rate rule ensure a pension plan can pay promised benefits without excessive asset accumulation?Download
The choice of discount rate makes a substantial difference to the magnitude of the assets required to ensure a pension plan is fully funded. Finance theory suggests that the discount rate should equal the default-free rate, but pension plan administrators argue for a rate equal to the long run...
Taxation and bond market investment strategies: Evidence from the market for Government of Canada bondsDownload
This article shows that, contrary to the suggestion of some investment advisers, for an individual Canadian investor subject to personal income taxation, the after-tax yield on a discount bond is always higher than (or, at worst, equal to) the yield on a premium bond. This follows because the tax...
The growth of debt and deficits in developed countries has led many states to consider the adoption of fiscal rules. There is little evidence on the benefits of different types of rules. This study uses Monte Carlo techniques to examine the impact on welfare and government spending stabilization...