Ecole des HEC-DEEP
Thèse de doctorat en Sciences Economiques mention "économie politique"


Francesco FURLANETTO

Three Essays on Monetary and Fiscal Policy

Directeur: Philippe Bacchetta
Imprimatur: octobre 2006

Abstract
The first chapter of the thesis looks at the impact of stock prices on the monetary policy strategy. I estimate a VAR, identified through heteroskedasticity, and I show that the interest rate response to the stock market has declined in the recent years whereas the response to house prices has increased. In the second and third chapter I look at the impact of government spending shocks in DSGE models. In the second chapter I extend the model with rule of thumb consumers, showing that results are robust to the introduction of wage rigidities in the model. In the third chapter I show that the baseline New Keynesian model is not consistent with the empirical evidence on fiscal shocks. The introduction of productive government spending in the model solves some empirical puzzles.