Optimal fiscal devaluation
We study fiscal devaluation in a small-open economy with labor market search frictions. Our analysis shows the key role of both dimensions in shaping the optimal tax scheme. By reducing labor market distortions, the tax reform is welfare-improving. Yet, as it makes imports more expensive, fiscal dev...
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Volume: | 6624 |
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Main Author: |
Langot, François
Patureau, Lise Sopraseuth, Thepthida |
Format: | Paper |
Language: | English |
Place of publication: |
Bonn Institute for the Study of Labor (IZA) 2012 |
published in: | Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit Vol. 6624 |
Data of publication: | 2012 |
Subjects: | |
Online Access: |
Fulltext |
Database: | EconStor Database information Databases - DBIS |