Please join us for an Economics Department Seminar Series event on Friday, April 23 from 3:10-4:30 PM EST. 

Fabio Gómez-Rodríguez of Lehigh University will present his paper:

“How do the US Government Decisions Affect its Borrowing Costs?”

(brief discussion and Q&A to follow). 

Bio: Fabio Gómez-Rodríguez will join Lehigh's Economics Department in the College of Business in the fall. He holds a PhD in Economics from Indiana University. His fields of interest are time series econometrics, macroeconomics, monetary and fiscal policy. Here please find links to his CV and website. See below for details of the paper he will present.

 Abstract: A government’s borrowing costs are encoded in the yield curve. We explore how the U.S. government’s decisions on how much to spend and how much to tax affect the nominal yield curve. For the fiscal shocks, we borrowed several government spending shocks from Auerbach Gorodnichenko (2012) and from Mertens and Ravn (2013) two tax shocks. Using long-run restrictions we identify semi-structural shocks by their effects on the level and spread effects on the yield curve in the long-run which then use to characterize the response of the yield curve to fiscal policy: government spending and income tax changes.

Please join us via ZOOM at:

https://lehigh.zoom.us/j/95406393066