کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
986714 1480839 2007 19 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Shocks and the unavoidable road to higher taxes and higher unemployment
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Shocks and the unavoidable road to higher taxes and higher unemployment
چکیده انگلیسی

This paper considers a matching model in which multiple steady-state unemployment rates exist if government expenditures and unemployment benefits are high enough. The focus on the extensive margin and a possible transition to a steady state with higher unemployment rates imply that the effect of tax rates can be high even when the elasticity between consumption and leisure is low. The matching friction limits transitions between steady states due to self-fulfilling expectations. After a sufficiently large increase in the unemployment rate and after a large enough increase in the tax burden caused by an exogenous increase in government spending, however, transition towards the high-unemployment steady state is unavoidable in an economy with generous unemployment benefits.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Review of Economic Dynamics - Volume 10, Issue 3, July 2007, Pages 348–366
نویسندگان
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