Fiscal Policy Coordination and International Trade

Datos Bibliográficos

ID9728522
AutoresTorben M Andersen (0000-0001-5513-1890, Aarhus University, autor de correspondencia)
Año2007
Volumen74
Número294
Páginas235-257
Fecha de publicación2007-05-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2006.00536.x
OpenAlexW2074785228
IdiomaEN
Referencias citadas24

While assertions are often made that non‐cooperative fiscal policies suffer a contractionary bias, general equilibrium models have shown that the bias is unambiguously expansionary. This paper argues that the latter result relies on a particular and critical way of modelling international trade, and that under a more plausible trade structure, it is possible that fiscal policy is insufficiently expansionary in the non‐cooperative case. Non‐cooperative policy‐making thus implies that fiscal policies are used too little if they expand private employment, and too much if they contract private employment. Inefficiencies in non‐cooperative fiscal policies worsen when product markets become more integrated

Commercial policy · Economics · Fiscal policy · General equilibrium theory · Incentive · International economics · Macroeconomics · Microeconomics · Monetary economics · Product (mathematics) · Product market · Fiscal Policy and Economic Growth · Global trade and economics · Politics, Economics, and Education Policy