Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/81989 
Authors: 
Year of Publication: 
1997
Series/Report no.: 
EPRU Working Paper Series No. 1997-19
Publisher: 
University of Copenhagen, Economic Policy Research Unit (EPRU), Copenhagen
Abstract: 
This paper focuses on intergenerational welfare effects of fiscal deficits in an OLG model with wage bargaining and equilibrium unemployment. Changes in wage and profit tax rates alter the intergenerational distribution by affecting capital accumulation as well as the price of a fixed asset. The welfare effect on the first old generation crucially depends on the tax instruments applied. The intergenerational welfare effects of postponing labor taxes are qualitatively similar to the effects in a model without unions. Increased union power will depress output and the asset price, but the sign of the welfare effect in steady state is nevertheless ambiguous.
Document Type: 
Working Paper

Files in This Item:
File
Size
67.18 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.