Merkl C, Faia E, Lechthaler W (2013)
Publication Language: English
Publication Type: Journal article
Publication year: 2013
Publisher: Elsevier
Book Volume: 37
Pages Range: 483-499
Journal Issue: 3
DOI: 10.1016/j.jedc.2012.09.004
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.
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.
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