On May 28th, Matt Schurin defended his dissertation entitled, “Three Essays on Fiscal Policy and Macroeconomic Fluctuations.” His major advisor is Christian Zimmermann and his associate advisors are Dong Jin Lee and Richard Suen.
Matt’s dissertation analyzes the macroeconomic effects of fiscal policy and examines what optimal policy should be in response to macroeconomic fluctuations. The first dissertation chapter explores what the government’s fiscal policy should be when banks hold significant amounts of public debt and the government can default on its debt obligations. The second dissertation chapter analyzes the effects of fiscal austerity using a two-sector small open economy model that is calibrated to the Canadian economy. Results from this model coincide with key characteristics of the Canadian economy. The third chapter examines the impact of government debt on macroeconomic volatility in an environment where, going forward, the government is required to balance its budget. The model in this chapter can help explain why developing countries have more volatile output and more countercyclical net exports than developed countries.
Matt is heading to McLean, VA where he will work for PricewaterhouseCoopers in their transfer pricing group.
Congratulations, Matt, on all your hard work!