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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Bibliographic details

Volume:	6624
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:	Kleines-offenes-Land Arbeitsuche Steuerreform fiscal devaluation payroll tax Dynamic General Equilibrium model Internationaler Wettbewerb labor market search small open economy Theorie Dynamisches Gleichgewicht consumption tax Optimale Besteuerung
Online Access:	Fulltext
Database:	EconStor Database information Databases - DBIS