Empirical macro models under test. A comparative simulation study of the employment effects of a revenue neutral cut in social security contributions
In the paper we simulate a revenue-neutral cut in the social security contribution rate using five different types of macro- / microeconomic models, namely two models based on time-series data where the labour market is modelled basically demand oriented, two models of the class of computable equilibrium models which are supply oriented and finally a firm specific model for international tax burden comparisons. Our primary interest is in the employment effects the models predict due to the cut in the contribution rate. It turns out that qualitatively all models considered predict an increase in employment three years after the cut. But the employment effects differ considerably in magnitude, which follows immediately from the different behavioral assumptions underlying the different models.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bovenberg, A.L. & de Mooij, R.A., 1994.
"Environmental levies and distortionary taxation,"
Other publications TiSEM
4b32deaa-ec2f-4de7-b59b-9, Tilburg University, School of Economics and Management.
- Lars Peter Hansen & James J. Heckman, 1996. "The Empirical Foundations of Calibration," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 87-104, Winter.
- Shoven,John B. & Whalley,John, 1992.
"Applying General Equilibrium,"
Cambridge University Press, number 9780521266550, june. pag.
- Hans Fehr, 1997.
"Belastungswirkungen der aktuellen Reformvorschläge zur Einkommensbesteuerung und zur Alterssicherung,"
Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research,
DIW Berlin, German Institute for Economic Research, vol. 66(3/4), pages 362-381.
- Fehr, Hans, 1997. "Belastungswirkungen der aktuellen Reformvorschläge zur Einkommensbesteuerung und zur Alterssicherung," Tübinger Diskussionsbeiträge 101, University of Tübingen, School of Business and Economics.
- Myers, Stewart C., 1984. "Capital structure puzzle," Working papers 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Lans Bovenberg, A. & de Mooij, Ruud A., 1994.
"Environmental taxes and labor-market distortions,"
European Journal of Political Economy,
Elsevier, vol. 10(4), pages 655-683, December.
- Pissarides, Christopher A., 1998.
"The impact of employment tax cuts on unemployment and wages; The role of unemployment benefits and tax structure,"
European Economic Review,
Elsevier, vol. 42(1), pages 155-183, January.
- Christopher Pissarides, 1997. "The impact of employment tax cuts on unemployment and wages : the role of unemployment benefits and tax structure," LSE Research Online Documents on Economics 2332, London School of Economics and Political Science, LSE Library.
- Christopher A. Pissarides, 1997. "The Impact of Employment Tax Cuts on Unemployment and Wages: The Role of Unemployment Benefits and Tax Structure," CEP Discussion Papers dp0361, Centre for Economic Performance, LSE.
- Franz, Wolfgang & Konig, Heinz, 1990. "A disequilibrium approach to unemployment in the Federal Republic of Germany," European Economic Review, Elsevier, vol. 34(2-3), pages 413-422, May.
- Göggelmann, Klaus & Franz, Wolfgang & Winker, Peter, 1997. "Einige Wirkungen von steuerlichen Umfinanzierungsmaßnahmen in einem makroökonometrischen Ungleichgewichtsmodell für die westdeutsche Volkswirtschaft," ZEW Discussion Papers 97-19, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September.
- Entorf, Horst & Konig, Heinz & Pohlmeier, Winfried, 1992. " Labor Utilization and Nonwage Labor Costs in a Disequilibrium Macro Framework," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(1), pages 71-83.
- Fair, Ray C & Jaffee, Dwight M, 1972. "Methods of Estimation for Markets in Disequilibrium," Econometrica, Econometric Society, vol. 40(3), pages 497-514, May.
- Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-92, July.
- Broer, D. Peter & Lassila, Jukka, . "Pension Policies and Public Debt in Dynamic CGE Models," ETLA A, The Research Institute of the Finnish Economy, number 23, 04.
- Franz, Wolfgang & Göggelmann, Klaus & Winker, Peter, 1996. "Ein makroökonometrisches Ungleichgewichtsmodell für die deutsche Volkswirtschaft 1960 bis 1994: Konzeption, Ergebnisse und Erfahrungen," Discussion Papers, Series II 327, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
- Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
- Conrad, Klaus & Schmidt, Tobias F. N., 1997. "Double dividend of climate protection and the role of international policy coordination in the EU: an applied general equilibrium analysis with the GEM-E3 model," ZEW Discussion Papers 97-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Capros, P. & Karadeloglou, P. & Mentzas, G., 1990. "An empirical assessment of macroeconometric and CGE approaches in policy modeling," Journal of Policy Modeling, Elsevier, vol. 12(3), pages 557-585.
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:18:y:2001:i:3:p:455-474. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.