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

Main Author:	Langot, François Patureau, Lise Sopraseuth, Thepthida
Format:	Paper
Language:	English
Place of publication:	Bonn IZA 2012
Data of publication:	2012
Series:	Discussion paper series
Subjects:	Arbeitsuche Dynamisches Gleichgewicht Internationaler Wettbewerb Kleine offene Volkswirtschaft Optimale Besteuerung Steuerreform Theorie
Online Access:	available in Bonn?
Database:	ECONIS Database information Databases - DBIS