Artikel
Macroeconomic effects of unemployment benefits in small open economies: a stock–flow consistent approach
This paper attempts to analyse the macroeconomic effects of unemployment benefits in a small open economy. We adopt a stock–flow consistent (SFC) approach with an emphasis on the dynamics of the labour market. We numerically solve the model using a combination of estimation and calibration to generate statistics for our key variables, reflecting features of the Danish economy. We then analyse the effects of a fall in the unemployment compensation rate on the economy. The results indicate that a fall in the compensation rate at a macro level leads to a trade-off between a fall in aggregate demand and a rise in net exports. Due to this trade-off, the net effect of a fall in the compensation rate on the aggregate unemployment rate tends to be weak. Our analyses in this paper raise several questions on the existing views regarding unemployment benefits adopted by a large strand of the economic literature.
- Language
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Englisch
- Bibliographic citation
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Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ; ISSN: 2052-7772 ; Volume: 15 ; Year: 2018 ; Issue: 3 ; Pages: 335-363
- Classification
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Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
Demand and Supply of Labor: General
Wages, Compensation, and Labor Costs: General
- Subject
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stock–flow consistent models
labour market
unemployment benefits
macroeconomic outcomes
small open economies
- Event
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Geistige Schöpfung
- (who)
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Byrialsen, Mikael Randrup
Raza, Hamid
- Event
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Veröffentlichung
- (who)
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Edward Elgar Publishing
- (where)
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Cheltenham
- (when)
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2018
- DOI
-
doi:10.4337/ejeep.2018.0032
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Byrialsen, Mikael Randrup
- Raza, Hamid
- Edward Elgar Publishing
Time of origin
- 2018
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