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The Work-and-Spend Cycle in a Globalized World

Author

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  • Markus Knell

    (Oesterreichsiche Nationalbank)

Abstract

In this paper we show that globalization might cause an inefficient reduction of working time regulation. The argument rest on the assumption that people care about their relative standing and that national policymakers fail to completely internalize the consumption externality of the increasingly international reference standards.

Suggested Citation

  • Markus Knell, 2009. "The Work-and-Spend Cycle in a Globalized World," Economics Bulletin, AccessEcon, vol. 29(1), pages 491-498.
    • Handle: RePEc:ebl:ecbull:eb-08j20019
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I1-P51.pdf
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    References listed on IDEAS

    as
    1. Francisco Alvarez-Cuadrado, 2007. "Envy, leisure, and restrictions on working hours," Canadian Journal of Economics, Canadian Economics Association, vol. 40(4), pages 1286-1310, November.
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    5. Andrew B. Abel, 2005. "Optimal Taxation when Consumers Have Endogenous Benchmark Levels of Consumption," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 21-42.
    6. Alberto Alesina & Edward Glaeser & Bruce Sacerdote, 2006. "Work and Leisure in the United States and Europe: Why So Different?," NBER Chapters, in: NBER Macroeconomics Annual 2005, Volume 20, pages 1-100, National Bureau of Economic Research, Inc.
    7. Harald Uhlig & Lars Ljungqvist, 2000. "Tax Policy and Aggregate Demand Management under Catching Up with the Joneses," American Economic Review, American Economic Association, vol. 90(3), pages 356-366, June.
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    More about this item

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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