Dynamic Fiscal Policies, Unemployment, and Economic Growth

Arbeitspapier

This paper analyzes the growth and employment effects of dynamic fiscal policies in an overlapping generations model with endogenous growth and imperfect labour markets. With balanced-budget policies, the modelled closed economy grows at a constant rate which is the higher, the lower are the labour tax rate and the unemployment rate. Both government Ponzi games and constant-flow budget policies are shown not to be feasible. Furthermore, while constant-stock fiscal policies are sustainable, an increase in the debt-to-capital ratio is accompanied by higher taxes, a rise in unemployment and lower economic growth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionspapier ; No. 9

Classification and Topics

• Classification: Wirtschaft ; Trade Unions: Objectives, Structure, and Effects ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; National Debt; Debt Management; Sovereign Debt ; One, Two, and Multisector Growth Models
• Subject: Unemployment ; Public debt ; Economic growth ; Overlapping generations ; Finanzpolitik ; Haushaltskonsolidierung ; Overlapping Generations ; Beschäftigungseffekt ; Neue Wachstumstheorie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Josten, Stefan Dietrich
• Event: Veröffentlichung
• (who): Universität der Bundeswehr Hamburg, Fächergruppe Volkswirtschaftslehre
• (where): Hamburg
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/23527
• URN: urn:nbn:de:gbv:705-opus-1370
• Last update: 10.03.2025, 11:43 AM CET