Fiscal stimulus and labor market policies in europe

Journal article


Publication Details

Author(s): Merkl C, Faia E, Lechthaler W
Journal: Journal of Economic Dynamics & Control
Publisher: Elsevier
Publication year: 2013
Volume: 37
Journal issue: 3
Pages range: 483-499
ISSN: 0165-1889
Language: English


Abstract


Several contributions have recently assessed the size of fiscal multipliers both in RBC models and in New Keynesian models. This paper computes fiscal multipliers within a labor selection model with turnover costs and Nash bargained wages. We find that demand stimuli yield small multipliers, as they have little impact on hiring and firing decisions. By contrast, hiring subsidies, and short-time work (German "Kurzarbeit") deliver large multipliers, as they stimulate job creation and employment. 



FAU Authors / FAU Editors

Merkl, Christian Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik


How to cite

APA:
Merkl, C., Faia, E., & Lechthaler, W. (2013). Fiscal stimulus and labor market policies in europe. Journal of Economic Dynamics & Control, 37(3), 483-499. https://dx.doi.org/10.1016/j.jedc.2012.09.004

MLA:
Merkl, Christian, Ester Faia, and Wolfgang Lechthaler. "Fiscal stimulus and labor market policies in europe." Journal of Economic Dynamics & Control 37.3 (2013): 483-499.

BibTeX: 

Last updated on 2018-19-04 at 02:45