Debt Reduction, Wage Formation and Intergenerational Welfare

Publikation: Bidrag til bog/antologi/rapportKonferencebidrag i proceedingsForskningpeer review

Abstract

The macroeconomic and cross-generational effects of policies aiming at public debt reduction are shown to depend crucially on how wages respond to the associated tightening of fiscal policy. In order to dampen the adverse transitional effects on the macroeconomy and in order to protect currently living generations against potentially severe drops in consumption possibilities, the paper argues in favour of a long-term strategy for debt reduction, achieved through a temporarily higher excise tax rate rather than raising the tax rate on labour income.
OriginalsprogEngelsk
TitelPension Policies and Public Debt in Dynamic CGE Models
RedaktørerD. Peter Broer, Jukka Lassila
Antal sider23
ForlagPhysica-Verlag
Publikationsdato1997
Sider167–189
ISBN (Trykt)9783790809701
ISBN (Elektronisk)9783662016602
DOI
StatusUdgivet - 1997
BegivenhedPension Systems, Taxation, and Public Debt in Dynamic CGE Models - ETLA, The Research Institute of the Finnish Economy, Helsinki, Finland
Varighed: 6 apr. 19957 apr. 1995

Workshop

WorkshopPension Systems, Taxation, and Public Debt in Dynamic CGE Models
LokationETLA, The Research Institute of the Finnish Economy
Land/OmrådeFinland
ByHelsinki
Periode06/04/199507/04/1995

Emneord

  • Fiscal policy
  • Trade unions
  • Macroeconomic adjustment

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