| 1. |
- 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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| 2. |
- Barry, Frank G.
(författare)
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An Optimizing Approach to Factor and Production Subsidies in a Small Open Economy with Classical Unemployment
- 1984
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper presents a two-period model of a small open economy with a rigid real wage and classical unemployment. The optimal levels of three common aggregate-supply policies - employment, investment and production subsidies - and their effects on social welfare, the government budget and the balance of payments, are analysed and contrasted. The costs and benefits of firm- and sector-specific subsidies are also considered.
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| 3. |
- Barry, Frank G.
(författare)
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Fiscal Policy in a Small Open Economy : An Integration of the Short-Run, Heckscher-Ohlin and Capital Accumulation Models
- 1984
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- this paper incorporates the response to fiscal policies described by the Heckscher-Ohllin and sector-specific-capital models within a more general framework of two-sector growth, for a small open economy with classical unemployment. The results of the short-run model are seen to apply when changes in fiscal policy are unanticipated while those of the model with intersectoral capital mobility are relevant when such changes are correctly anticipated. This is in sharp contrast to the conventional interpretation of these models as describing consecutive rather than alternative transition stages of the economy. Other results are that permanent bond-financing of deficits is unstable, temporary bond-financing has long-run contractionary effects, and that possible temporary increases in employment due to fiscal policy are likely to be dominated by subsequent reductions when public spending is financed by increased taxation.
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| 4. |
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| 5. |
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| 6. |
- Blomqvist, Åke, et al.
(författare)
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Public Health Insurance and Optimal Income Taxation
- 1982
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- If individuals differ not only in their inherent capacity to earn income, but also in the probability that they will fall ill, can subsidized public health insurance be justified on the grounds that it serves as an efficient tool to redistribute welfare? This question is analyzed in a model where the social welfare function is a weighted average of individual expected utilities, and where taxation is by a linear income tax. The answer is "yes", except in certain special cases.
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| 7. |
- Brownstone, David, et al.
(författare)
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Effects of Tax Reform on the Demand for Owner-Occupied Housing : A Microsimulation Approach
- 1984
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- The paper analyzes the effects on the demand for owner-occupied housing that are likely to result from the Swedish 1983-85 tax reform. This is done by means of a microsimulation model which takes into account the dichotomous nature of the demand for housing: the consumers choose the mode of tenure (owning versus renting) as well as the quantity of housing conditional on the choice of the mode of tenure. The tax reform consists of a general reduction of marginal tax rates (i.e. an increase in disposable income) together with limitations in the deductibility of mortgage interests. The simulations show that this will cause an increase in home-ownership in the sense that more households will demand owner-occupied housing. At the same time, however, the households will demand smaller houses in the average, and thus aggregate demand for small and medium-sized units will increase while demand for large units will fall sharply.
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| 8. |
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| 9. |
- Calmfors, Lars, et al.
(författare)
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Classical Unemployment, Accommodation Policies and the Adjustment of Real Wages
- 1984
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- The paper develops a model of wage formation and stabilization policy in economies with centralized wage setting and strong trade unions. The aim is to explain the present stagflation with heavy unemployment and large government deficits. The analysis gives a theoretical underpinning to the assertion that accommodation policies may cause wage inflation and in the end reduce employment. Various methods of accomplishing a real wage adjustment are discussed: (1) a policy of complete non-accommodation; (2) continued accommodation policies but with lower employment targets; (3) social contracts; and (4) tax-based incomes policies (TIP).
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| 10. |
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