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...

Full description

Saved in:
Bibliographic details
Main Author: Sopraseuth, Thepthida
Langot, Francois
Patureau, Lise
Format: Paper
Language: English
Place of publication: 01.04.2012
Related: CEPREMAP
Data of publication: 2012/04
Series: CEPREMAP Working Papers (Docweb)
Subjects:
Online Access: available in Bonn?
Database: RePEc
RePEc IDEAS
Database information Databases - DBIS