Borrow and Adjust: Fiscal Policy and Sectoral Adjustment in an Open Economy*
研究在面临不利外部冲击时，政府是否应通过财政赤字来应对，并分析部门调整成本对财政政策福利效应的影响。
Should the government run fiscal deficits in response to an adverse external shock that warrants transfer of resources from production of nontraded to traded goods? This article considers normative fiscal policy implications of sectoral adjustment costs in a two‐sector model with overlapping generations. Fiscal deficits benefit present generations by depleting foreign assets and slowing down the adjustment process. We show that despite no nominal rigidities, temporary fiscal deficits increase social welfare if adjustment costs prevent immediate sectoral reallocation of inputs. If there are no adjustment costs, the case for fiscal deficits vanishes.