Publikation:

Budgetary policy and unemployment dynamics in an olg model with collective bargaining

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2004

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Thadden, Leopold von

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http://nbn-resolving.de/urn:nbn:de:bsz:352-opus-88619
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https://doi.org/10.1111/j.1468-0297.2004.00247.x
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Published

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The Economic Journal. 2004, 114(498), pp. 867-889. ISSN 0013-0133. eISSN 1468-0297. Available under: doi: 10.1111/j.1468-0297.2004.00247.x

Zusammenfassung

We consider a dynamic general equilibrium model with capital accumulation and collective wage bargaining and investigate how unemployment responds to structural shocks under two stylised budgetary policies. Under balanced budgets, tax adjustments lead to higher unemployment on impact but enable a quick recovery of employment. By contrast, unbalanced budgets mitigate unemployment effects on impact but dynamics are more persistent due to weaker capital accumulation and future fiscal consolidations. These results are consistent with empirical evidence on a positive cross-country relationship between government borrowing and unemployment persistence.

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330 Wirtschaft

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ISO 690KAAS, Leo, Leopold von THADDEN, 2004. Budgetary policy and unemployment dynamics in an olg model with collective bargaining. In: The Economic Journal. 2004, 114(498), pp. 867-889. ISSN 0013-0133. eISSN 1468-0297. Available under: doi: 10.1111/j.1468-0297.2004.00247.x
BibTex
@article{Kaas2004Budge-12119,
  year={2004},
  doi={10.1111/j.1468-0297.2004.00247.x},
  title={Budgetary policy and unemployment dynamics in an olg model with collective bargaining},
  number={498},
  volume={114},
  issn={0013-0133},
  journal={The Economic Journal},
  pages={867--889},
  author={Kaas, Leo and Thadden, Leopold von}
}
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