Artikel

Optimal Fiscal Policy with Labor Selection

This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. In a calibrated non-Ramsey decentralized equilibrium, labor market volatility is inefficient. Keeping fixed the structural parameters, the Ramsey government achieves efficient labor market volatility; doing so requires labor-income tax volatility that is orders of magnitude larger than the "tax-smoothing" results based on Walrasian labor markets, but a few times smaller than the results based on search and matching markets. We analytically characterize selection-model-consistent wedges and ine ciencies in order to understand optimal tax volatility.

Sprache
Englisch

Erschienen in
Journal: Journal of Economic Dynamics and Control ; ISSN: 0165-1889 ; Volume: 94 ; Year: 2018 ; Pages: 142-189 ; Amsterdam: Elsevier

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
Monetary Policy, Central Banking, and the Supply of Money and Credit: General
Fiscal Policy
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
Demand and Supply of Labor: General
Thema
labor market frictions
hiring costs
efficiency
optimal taxation
labor wedge
zero intertemporal distortions

Ereignis
Geistige Schöpfung
(wer)
Chugh, Sanjay K.
Lechthaler, Wolfgang
Merkl, Christian
Ereignis
Veröffentlichung
(wer)
Elsevier
ZBW - Leibniz Information Centre for Economics
(wo)
Amsterdam
(wann)
2018

DOI
doi:10.1016/j.jedc.2018.06.005
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Chugh, Sanjay K.
  • Lechthaler, Wolfgang
  • Merkl, Christian
  • Elsevier
  • ZBW - Leibniz Information Centre for Economics

Entstanden

  • 2018

Ähnliche Objekte (12)