Optimal fiscal policy in open economies with labour market distortions

• 成果类型: Article
• 署名作者: Andersen, TM; Rasmussen, BS; Sorensen, JR
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(96)01584-8
• 发表日期: 1996
• 页码: 103-117
• 关键词: Optimal fiscal policy; distortionary taxation; unemployment; policy cooperation

摘要

We set up a general equilibrium model with unemployment owing to distortions in the labour market. It is shown that a public expansion, financed by a distortionary income tax, may give rise to a decrease in unemployment. Even if public goods are pure waste, such an expansion may give rise to an increase in welfare if it is associated with a decrease in unemployment. Since part of the gain from a fiscal expansion is achieved at the expense of welfare in other countries, non-cooperative policies tend to be too expansionary.