IDEAS home Printed from https://ideas.repec.org/p/tam/wpaper/0739.html
   My bibliography  Save this paper

Effects of Fiscal Policy under Free Factor Migration

Author

Listed:
  • Hannu Laurila

    (School of Management, University of Tampere)

Abstract

The effects of fiscal policy are examined in a neo-Keynesian macroeconomic model under perfect factor mobility. The key finding is that, even in the classical regime of the model, fiscal policy may have real effects: a positive policy shock motivates emigration of labour and immigration of capital and vice versa. The effect on labour migration is the stronger the higher are the local adjustment costs as compared to the mobility costs. The effect on capital migration is clear as far as the real interest rate is the relevant market parameter.

Suggested Citation

  • Hannu Laurila, 2007. "Effects of Fiscal Policy under Free Factor Migration," Working Papers 0739, Tampere University, Faculty of Management and Business, Economics.
    • Handle: RePEc:tam:wpaper:0739
    as

    Download full text from publisher

    File URL: http://urn.fi/urn:isbn:978-951-44-6930-5
    File Function: Second version, 2007
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tam:wpaper:0739. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sami Remes (email available below). General contact details of provider: https://edirc.repec.org/data/khutafi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.