Labour tax reforms, cross-country coordination and the monetary policy stance in the euro area: a structural model-based approach
"We evaluate the effects of permanently reducing labour tax rates in the euro area (EA) by simulating a large-scale open economy dynamic general equilibrium model. The model features the EA as a monetary union, split in two regions (Home and the rest of the EA - REA), the US, and the rest of th...
| Main Authors: | , , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Frankfurt am Main
2018
ECB |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19396467124911146499-Labour-tax-reforms,-cross-coun.htm |
| _version_ | 1771659902327980033 |
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| author | Jacquinot, Pascal Lozej, Matija Pisani, Massimiliano |
| author_facet | Jacquinot, Pascal Lozej, Matija Pisani, Massimiliano |
| collection | Library items |
| description | "We evaluate the effects of permanently reducing labour tax rates in the euro area (EA) by simulating a large-scale open economy dynamic general equilibrium model. The model features the EA as a monetary union, split in two regions (Home and the rest of the EA - REA), the US, and the rest of the world, region-specific labour markets with search and matching frictions, and public employment. Our results are as follows. First, a permanent reduction in labour tax rates in the Home region would have stimulating effects on domestic economic activity and employment. Second, reducing labour tax rates simultaneously in both Home and REA would have additional expansionary effects on the Home region. Third, in the short run the expansionary effects on the EA economy of a EA-wide tax reduction are enhanced if the EA monetary policy is accommodative." |
| format | TEXT |
| geographic | EU countries |
| id | 19396467124911146499_026762348f0b45c69bca8fe7ce1c3409 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19396467124911146499_026762348f0b45c69bca8fe7ce1c3409 |
| is_hierarchy_title | Labour tax reforms, cross-country coordination and the monetary policy stance in the euro area: a structural model-based approach |
| language | English |
| physical | 81 p. Digital |
| publishDate | 2018 |
| publisher | Frankfurt am Main ECB |
| spellingShingle | Jacquinot, Pascal Lozej, Matija Pisani, Massimiliano fiscal policy labour cost employment payroll tax unemployment monetary policy Labour tax reforms, cross-country coordination and the monetary policy stance in the euro area: a structural model-based approach |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=131559195973 |
| title | Labour tax reforms, cross-country coordination and the monetary policy stance in the euro area: a structural model-based approach |
| topic | fiscal policy labour cost employment payroll tax unemployment monetary policy |
| url | https://www.labourline.org/KENTIKA-19396467124911146499-Labour-tax-reforms,-cross-coun.htm |