Fiscal Policy Coordination with Demand Spillovers and Unionised Labour Markets
Abstract
The authors explore the incentives for governments to cooperate by expanding expenditure. They have three countries: two are in a monetary union (the EMU). The labour markets of both the EMU countries are unionized and there is involuntary unemployment in equilibrium. The authors explore the intra- and intercountry effects of changes in bargaining power. They then examine optimal government expenditures in each EMU country; the authors find that there is a positive spillover and that expenditures are strategic complements. The coordinated equilibrium involves higher expenditure than the uncoordinated equilibrium. Copyright 1997 by Royal Economic Society.Download Info
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Bibliographic Info
Article provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 107 (1997)
Issue (Month): 441 (March)
Pages: 403-17
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Roel Beetsma & Lans Bovenberg, 2001.
"Structural Distortions and Decentralized Fiscal Policies in EMU,"
CESifo Working Paper Series
473, CESifo Group Munich.
- Beetsma, R.M.W.J. & Bovenberg, A.L., 2005. "Structural distortions and decentralized fiscal policies in EMU," Open Access publications from Tilburg University urn:nbn:nl:ui:12-154977, Tilburg University.
- Beetsma, Roel & Bovenberg, A Lans, 2001. "Structural Distortions and Decentralized Fiscal Policies in EMU," CEPR Discussion Papers 2851, C.E.P.R. Discussion Papers.
- Roel Beetsma & Xavier Debrun & Frank Klaassen, 2001.
"Is Fiscal Policy Coordination in EMU Desirable?,"
CESifo Working Paper Series
599, CESifo Group Munich.
- Roel Beetsma & Xavier Debrun & Franc Klaassen, 2001. "Is Fiscal Policy Coordination in EMU Desirable?," IHEID Working Papers 04-2001, Economics Section, The Graduate Institute of International Studies.
- Beetsma, Roel & Debrun, Xavier & Klaassen, Franc, 2001. "Is Fiscal Policy Coordination in EMU Desirable?," CEPR Discussion Papers 3035, C.E.P.R. Discussion Papers.
- Roel M. W. J. Beetsma & Xavier Debrun & Franc Klaassen, 2001. "Is Fiscal Policy Coordination in EMU Desirable?," IMF Working Papers 01/178, International Monetary Fund.
- Jorge Blázquez & José M. Martín-Moreno, 2002. "Capital privado y competencia internacional: la armonización fiscal nunca es suficiente," Investigaciones Economicas, Fundación SEPI, vol. 26(2), pages 359-372, May.
- Nicola Acocella & Giovanni Di Bartolomeo, 2001.
"Wage and public expenditure setting in a monetary union,"
Macroeconomics
0105002, EconWPA.
- Nicola Acocella & Giovanni Di Bartolomeo, 2003. "Wage and Public Expenditure Setting in a Monetary Union," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 6(1-2), pages 1-16, May - Nov.
- Nicola Acocella & Giovanni Di Bartolomeo, 2001. "Wage and public expenditure setting in a monetary union," Working Papers 42, University of Rome La Sapienza, Department of Public Economics.
- Nicola Acocella & Giovanni Di Bartolomeo, 2001.
"Partisanship and fiscal policy co-ordination in a monetary union,"
Macroeconomics
0106003, EconWPA.
- Acocella N. & Di Bartolomeo G., 2001. "Partisanship and fiscal policy co-ordination in a monetary union," Working Papers 2001013, University of Antwerp, Faculty of Applied Economics.
- Carmen Díaz Roldán, 2000.
"Coordination of fiscal policies in a monetary union,"
Documentos de Trabajo - Lan Gaiak Departamento de EconomÃa - Universidad Pública de Navarra
0003, Departamento de Economía - Universidad Pública de Navarra.
- Carmen Díaz-Roldán, . "Coordination of Fiscal Policies in a Monetary Union," Working Papers on International Economics and Finance 00-09, FEDEA.
- Carmen Díaz-Roldán, 2000. "Coordination Of Fiscal Policies In A Monetary Union," Working Papers 00-09, Asociación Española de Economía y Finanzas Internacionales.
- Emmanuelle Taugourdeau, 2002. "Imperfect Competition and Fiscal Policy Transmission in a Two-Country Economy," Open Economies Review, Springer, vol. 13(1), pages 47-71, January.
- Büttner, Thiess, 1999. "Regional Stabilization by Fiscal Equalization? Theoretical Considerations and Empirical Evidence from Germany," ZEW Discussion Papers 99-23, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Jean-Paul Fitoussi & Francesco Saraceno, 2002. "A Theory of Social Custom of Which Soft Growth May Be One Consequence. Tales of the European Stability Pact," Documents de Travail de l'OFCE 2002-07, Observatoire Francais des Conjonctures Economiques (OFCE).
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