Should fiscal policy be different in a non-competitive framework?

• 成果类型: Article
• 署名作者: Gorostiaga, A
• 署名单位: University of Basque Country
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(03)00081-3
• 发表日期: 2003
• 页码: 1311-1331
• 关键词: Ramsey problem; labor market imperfections; incomplete markets

摘要

This paper studies if imperfections in the labor market justify a different fiscal policy. We present a dynamic general equilibrium model with a Ramsey planner deciding about public spending, labor taxes and debt. Two different labor market setups are considered. First we assume a competitive labor market and then we introduce a union with monopoly power. Both models reach the same conclusion as regards to the cyclical properties of the optimal policy: it is not optimal to implement a countercyclical fiscal policy. We also find that government spending should be larger under perfect competition. These main results arise both under complete and incomplete markets for the debt. (C) 2003 Elsevier B.V. All rights reserved.