| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP1430 |
| DP1430 Employment, Macroeconomic Fluctuations and Job Security | |
| Dennis Snower; María del Pilar Díaz-Vázquez | |
| 发表日期 | 1996-07-31 |
| 出版年 | 1996 |
| 语种 | 英语 |
| 摘要 | In this paper, we study the link between profitability, fiscal policy and exchange rate regimes. We are particularly interested in adding realism to the treatment of fiscal policy by looking explicitly at its individual components. We show that the different types of government spending and taxation affect profitability through two main channels, namely changes in labour costs and movements in the nominal exchange rate when the exchange rate is flexible. This also implies that the different components of fiscal policy have different effects on profitability depending on the exchange rate regime. Using a panel of OECD countries over 1960?94, we find considerable empirical support for the predictions of our model. Increases in government wage consumption lead to higher labour costs and a nominal exchange rate appreciation; hence, they have a stronger negative impact on profitability under a flexible exchange rate regime. The opposite holds for increases in labour taxation. In contrast, and in line with our model, government non-wage consumption and transfers have only minor effects on exchange rates and profitability, and regime effects are small in these cases. The implication for countries attempting a fiscal adjustment is that its impact on profitability depends critically on the composition of the fiscal adjustment and on the exchange rate policy. |
| 主题 | International Macroeconomics |
| 关键词 | Exchange rate regimes Fiscal policy Profitability |
| URL | https://cepr.org/publications/dp1430 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/530573 |
| 推荐引用方式 GB/T 7714 | Dennis Snower,María del Pilar Díaz-Vázquez. DP1430 Employment, Macroeconomic Fluctuations and Job Security. 1996. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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