| 1. |
- Agell, Jonas, et al.
(författare)
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Asset Markets, Tax Arbitrage, and the Redistributive Properties of Progressive Income Taxation
- 1988
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- It is commonly believed that tax arbitrage is anti-egalitarian. The present paper shows that this is not necessarily true; tax arbitrage might actually reduce inequality as well as increase efficiency. It is also shown that the introduction of tax arbitrage will linearize the tax system. Thus complicated, non-linear tax scedules in the spirit of Mirrlees (1971) cannot be sustained.
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| 2. |
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| 3. |
- Agell, Jonas, et al.
(författare)
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Egalitarianism and Growth
- 1991
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Are competitive wage premia an obstacle to growth? The answer of the architects of the Scandinavian "model" in the 1950s and 60s was in the affirmative: By punishing expansive and growth enhancing sectors of the economy competitive wage premia put an unwarranted drag on the rate of structural change. We formalize this intuition using a two sector endogenous growth model, considering both open and closed economy cases. We also show that egalitarian pay compression, combined with active labor market policies, works exactly in the same way as an industrial policy of subsidizing sunrise industries.
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| 4. |
- Agell, Jonas, et al.
(författare)
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Fiscal Policy when Monetary Policy is Tied to the Mast
- 1994
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- The paper analyses the time inconsistency problem of both exchange rate and fiscal policy in a small open economy. The equilibrium under discretion is characterised by inflation and a deficit. Commitment of the exchange-rate instrument only, e.g., through membership in a European monetary union with low inflation, contributes to price stability but increases the deficit. Whether the government will prefer this outcome to the discretionary one depends on the structure of the economy: commitment appears more favourable, the more open is the economy. The time-consistency arguments strengthen the case for simultaneous commitment of monetary and fiscal policy for inflation-prone countries joining a monetary union.
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| 5. |
- Agell, Jonas, et al.
(författare)
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Macroeconomic Externalities : Are Pigovian Taxes the Answer?
- 1991
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Basic welfare economics tells us that many types of externalities can be remedied by proper use of corrective taxes and subsidies. This paper shows that this notion also extends to the macroeconomic externalities discussed in recent Keynesian literature on nominal price rigidities. The derived policy rules are lindred in spirit to standard Keynesian policy prescriptions: Progressive income taxes may serve a useful role in combating wasteful economic fluctuations. However, unlike older fix-price models of automatic stabilizers, progressive taxes work in our monopolistic economy because they directly affect the pricing mechanism.
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| 6. |
- Agell, Jonas, et al.
(författare)
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Wage Fairness and International Trade Theory and Policy
- 1991
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- We show how an extended theory of fair wages, in which workers also care about the functional distribution of income, can be incorporated in the two-by-two Heckscher-Ohlin model. An important feature of the model is the existence of involuntary unemployment. Several results stand out. First, there is no longer a simple relation between measures of factor abundance and trade patterns. First, there is no longer a simple relation between measures of factor abundance and trade patterns. Second, factor-price equalization will generally not occur. Third, differences in social norms explain why terms of trade shocks produce nonuniform adjustments in real wages and unemployment across otherwise similar countries. Fourth, losses from trade may occur. Finally, in countries where fairness considerations are important, tariffs may increase overall employment.
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| 7. |
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| 8. |
- Ahtiala, Pekka
(författare)
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A Synthesis of the Macroeconomic Approaches to Exchange Rate Determination
- 1983
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- The paper develops a general model with the goods, money, bond, and labor markets. The special assumptions needed to generate the predictions of the Keynesian, monetarist, and portfolio balance approaches from the model are then found. It turns out that the assumtion of perfect capital mobility essentially generates the monetarist predictions, and perfect monetary sterilization by the central bank at a fixed interest rate the predictions of the elasticity-absorption approach. The supply side regime and purchasing-power parity assumptions fix income but do not qualitatively affect the exchange rate responses. The approaches turn out to be independent, rather than contradictory parts of the general model, each approach abstracting from what the other is analysing. This is technically done by dichotomizing the general model, the monetarists making the money market equation, and the Keynesians the goods market and balance payments equations the independent ones. The orthodox neutral monetary policy version of the Keynesian approach generates the predictions of the whole model. While the Keynesian and monetarist approaches differ in their policy regime assumptions, the portfolio balance approach differs in its equilibrium condition, by constraining the trade balance to equilibrium.
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