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Fiscal Shocks And Real Wages

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  • Agustín S. Bénétrix

Abstract

I estimate the short-run dynamic effect of fiscal shocks on real wages for a panel of euro area countries. The main findings are in line with the Neo-Keynesian predictions that real wages increase in response to spending shocks. However, the scale of the wage response depends on the type of government spending
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Suggested Citation

  • Agustín S. Bénétrix, 2012. "Fiscal Shocks And Real Wages," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 203-220, July.
  • Handle: RePEc:wly:ijfiec:v:17:y:2012:i:3:p:203-220
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    Cited by:

    1. Agustín Bénétrix & Philip Lane, 2010. "Fiscal Shocks and The Sectoral Composition of Output," Open Economies Review, Springer, vol. 21(3), pages 335-350, July.
    2. Hafedh Bouakez & Denis Larocque & Michel Normandin, 2018. "Separating the wheat from the chaff: A disaggregate analysis of the effects of public spending in the US," Canadian Journal of Economics, Canadian Economics Association, vol. 51(2), pages 361-390, May.
    3. Heshmati, Almas & Kim, Jungsuk, 2014. "A Survey of the Role of Fiscal Policy in Addressing Income Inequality, Poverty Reduction and Inclusive Growth," IZA Discussion Papers 8119, Institute of Labor Economics (IZA).

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