Towards a quantitative theory of automatic stabilizers: The role of demographics

• 成果类型: Article
• 署名作者: Janiak, Alexandre; Monteiro, Paulo Santos
• 署名单位: Universidad de Chile; University of York - UK
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2015.12.006
• 发表日期: 2016
• 页码: 35-49
• 关键词: Automatic stabilizers; distortionary taxes; demographics

摘要

Employment volatility is larger for young and old workers than for the prime aged. At the same time, in countries with high tax rates, the share of total hours supplied by young/old workers is lower. These two observations imply a negative correlation between government size and business cycle volatility. This paper assesses in a heterogeneous agent OLG model the quantitative importance of these two facts to account for the empirical relation between government size and macroeconomic stability. (C) 2016 Elsevier B.V. All rights reserved.