Fiscal Policy Coordination with Demand Spillovers and Unionised Labour Markets
Bibliographic Data
| ID | 9707099 |
|---|---|
| Authors | Huw David Dixon (0000-0002-9875-8965, University of York and CEPR), Michele Santoni (0000-0001-5971-4751, University of Warwick) |
| Year | 1997 |
| Volume | 107 |
| Issue | 441 |
| Pages | 403-417 |
| Publication date | 1997-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.0013-0133.1997.166.x |
| OpenAlex | W2168294952 |
| Language | EN |
| Citations received | 1 |
| References cited | 2 |
We explore the incentives for governments to cooperate by expanding expenditure. We have three countries: two are in a monetary union (the EMU). The labour markets of both the EMU countries are unionised, and there is involuntary unemployment in equilibrium. We explore the intra and intercountry effects of changes in bargaining power. We then examine optimal government expenditures in each EMU country; we find that there is a positive spillover, and that expenditures are strategic complements. The coordinated equilibrium involves higher expenditure than the uncoordinated equilibrium
Bargaining power · Economics · Fiscal policy · Government (linguistics · Government Expenditure · Incentive · International economics · Labour economics · Macroeconomics · Market economy · Microeconomics · Monetary economics · Public finance · Spillover effect · Unemployment · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Politics, Economics, and Education Policy
| Citation velocity | historical |
|---|---|
| Highly cited | No |