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Tuesday, May 5, 2020 | History

2 edition of Fiscal shocks in an efficiency wage model found in the catalog.

Fiscal shocks in an efficiency wage model

Craig Burnside

Fiscal shocks in an efficiency wage model

by Craig Burnside

  • 81 Want to read
  • 20 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Fiscal policy -- United States -- Econometric models.,
  • Government purchasing -- United States -- Econometric models.,
  • Business cycles -- Econometric models.,
  • Wages -- Econometric models.

  • Edition Notes

    StatementCraig Burnside, Martin Eichenbaum, Jonas Fisher
    SeriesNBER working paper series -- no. 7515, Working paper series (National Bureau of Economic Research) -- working paper no. 7515.
    ContributionsEichenbaum, Martin S., Fisher, Jonas D. M. 1965-, National Bureau of Economic Research.
    The Physical Object
    Pagination18, [3] p. :
    Number of Pages18
    ID Numbers
    Open LibraryOL22396579M

    EFFICIENCY OF FISCAL AND MONETARY POLICIES IN THE PHILIPPINES: THE ST. LOUIS MODEL APPROACH 1 Neil Angelo C. Halcon Leah Melissa T. De Leon Introduction ebates have persisted around what policy is deemed effective in stimulating as well as in stabilizing growth in the Philippines. Over time, the interactions of both fiscal and monetary policies File Size: KB. two-sector model can produce the real exchange rate depreciation found in the data. Finally, markup variations triggered by flrm entry modify substantially the response of the real wage and the sectoral composition of GDP in the short-run. Keywords: Non-traded Goods; Fiscal Shocks; Investment; Current Account. JEL Classiflcation: F41, E

    The efficiency- wage hypothesis also offers a simple explana- tion for the existence of wage differentials which might motivate the search process em- phasized by Edmund Phelps and others. If the relationship between wages and effort differs among firms, each firm's File Size: KB.   The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks by Christina D. Romer and David H. Romer. Published in volume , issue 3, pages of American Economic Review, June , Abstract: This paper investigates the impact of tax changes on economic activi.

    Estimates Based on a New Measure of Fiscal Shocks By Christina D. Romer and David H. Romer* This paper investigates the impact of tax changes on economic activity. We use the narrative record, such as presidential speeches and Congressional reports, to identify the size, timing, and principal motivation for all major post-war tax policy actions. responses of the exchange rate to fiscal shocks varies over the business cycle as well as at the zero lower bound and in normal times. JEL codes: E62, F41 Key words: fiscal multiplier, fiscal spillover, exchange rate, high-frequency analysis. Acknowledgment: We are grateful to Seunghwan Lim, Walker Ray, and Mauricio Ulate forCited by: 7.


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Fiscal shocks in an efficiency wage model by Craig Burnside Download PDF EPUB FB2

A version of Alexopoulos' () efficiency wage model, modified to allow for fiscal shocks. Section 5 assesses the quantitative properties of the model. Finally, Section 6 contains. Get this from a library. Fiscal shocks in an efficiency wage model. [Craig Burnside; Martin S Eichenbaum; Jonas D M Fisher; National Bureau of Economic Research.].

Downloadable. This paper analyzes the ability of a general equilibrium efficiency wage model to account for the estimated response of hours worked and of real wages to a fiscal policy shock.

Our key finding is that the model cannot do so unless we make the counterfactual assumption that marginal tax rates are constant. The model shares the strengths and weaknesses of high labor supply Cited by: Fiscal Shocks in an Efficiency Wage Model Craig Burnside, Martin Eichenbaum, Jonas D.M.

Fisher. NBER Working Paper No. Issued in January NBER Program(s):Economic Fluctuations and Growth, Monetary Economics This paper analyzes the ability of a general equilibrium efficiency wage model to account for the estimated response of hours worked and of real wages to a fiscal policy shock.

Get this from a library. Fiscal shocks in an efficiency wage model. [Craig Burnside; Martin S Eichenbaum; Jonas D M Fisher; National Bureau of Economic Research.] -- Abstract: This paper analyzes the ability of a general equilibrium efficiency wage model to account for the estimated response of hours worked and of real wages to a fiscal policy shock.

Fiscal Shocks in an E¢ciency Wage Model¤ Craig Burnsidey Martin Eichenbaumz Jonas D.M. Fisherx September 1.

Introduction This paper illustrates a particular limited information strategy for assessing the empirical plausibility of alternative quantitative general. Craig Burnside & Martin Eichenbaum & Jonas D. Fisher, "Fiscal shocks in an efficiency wage model," Working Paper Series WP, Federal Reserve Bank of Chicago, revised Handle: RePEc:fip:fedhwp:wp Fiscal Shocks in an Efficiency Wage Model By Craig Burnside, Martin Eichenbaum, Jonas D.

Fisher This paper analyzes the ability of a general equilibrium efficiency wage model to account for the estimated response of hours worked and of real wages to a fiscal policy shock.

THE EFFECTS OF FISCAL SHOCKS ON EMPLOYMENT AND THE REAL WAGE Production Finalgoodfirm. Intheproductionsector,acompetitivefirmaggregates intermediate goods into a final good using the following constant-returns-to-scale technology: Y t = ε 1 0 Y t(j) ε−1 ε dj ε−1 (4), where ε>1 is the constant elasticity of demand.

Efficiency Wage Models of the Labor Market explores the reasons why there are labor market equilibria with employers preferring to pay wages in excess of the market-clearing wage and thereby explains involuntary unemployment.

This volume brings together a number of Price: $ 1 Introduction to Volume I Business cycles 2 Knowing the cycle, Dan Harding and Adrian Pagan 3 Fiscal shocks in an efficiency wage model, Craig Burnside, Martin Eichenbaum and Jonas D. Fisher 4(a) The return of business cycles, James Hartley 4(b) General discussion Monetary policy 5 Does money determine UK inflation over the long run?, David F.

Hendry 6 Recent developments in monetary. In the efficiency wage model, if the real wage is higher than the market-clearing wage so that there is an excess supply of labor, employers will not hire workers who are willing to work for a lower wage. The Effects of Fiscal Shocks on Employment and the Real Wage Article in International Economic Review 50(1) February with 66 Reads How we measure 'reads'Author: Evi Pappa.

Labour Market and Fiscal Policy Adjustments to Shocks The Efficiency Wage Hypothesis, Labour Productivity and the Minimum Wage. Pages Labour Market and Fiscal Policy Adjustments to Shocks Book Subtitle The Role and Implications for Price and Financial Stability in South Africa.

shocks (shifts in a) do not affect the efficiency wage but lead to al-terations in the level of employment.7 The simple efficiency wage model can easily be extended to provide potential rationales for wage differentials among workers with identical characteristics and.

This book focuses on the implications of the South African labour market dynamics including labour market reforms and fiscal policy for monetary policy and financial stability. Evidence suggests there are benefits in adopting an approach that coordinates labour market policies and reforms, fiscal policy, price and financial stability.

standard New Keynesian model. Both in the VAR and in the model, we find that unexpected changes in fiscal volatility shocks can have a sizable adverse effect on economic activity. An endogenous increase in markups is a key mechanism. (JEL E12, E23, E32, E52, E62) The recovery in the United States continues to be held back by a number of.

The efficiency wage theory has in recent years generally been regarded as a powerful vehicle for explaining why involuntary unemployment has persisted in the labor market.

In constructing a business cycle model, “a potential problem of the efficiency-wage hypothesis is the absence of a link between aggregate demand and economic activity.

The model is calibrated to a quarterly frequency. The rate of depreciation δ is set to (implying a 10% annual rate). The elasticity of output with respect to capital α is assumed to be 1/3. We assume σ = φ = 1, implying a logarithmic utility set the discount factor β equal to (implying a steady state real annual return of 4%).Cited by: 2.

• “On the Fiscal Implications of Twin Crises,” with Martin Eichenbaum and Sergio Rebelo in Michael P. Dooley and Jeffrey A. Frankel, eds. Managing Currency Crises in Emerging Markets. Chicago: University of Chicago Press, • “Fiscal Shocks in an Efficiency Wage File Size: 80KB.

The Keynesian model makes a case for greater levels of government intervention, especially in a recession when there is a need for government spending to offset the fall in private sector investment. (Keynesian economics is a justification for the ‘New Deal’ programmes of the s.) 2.

Fiscal Policy. Classical economics places little.Efficiency Wage Theory Model and Sub-models The efficiency wage model asserts that the productivity of workers in firms is positively correlated with the wages they receive.

The model has different explanations as to why this is the case. These explanations in turn can be seen as sub-models to the efficiency wage model 2:File Size: KB.new measure of fiscal shocks support the view that the effects are large and negative.

Methodologically, the approach we use is related to our earlier work on monetary policy (Romer and Romer). As with fiscal policy, estimating the effects of monetary policy.