Cross-country fiscal policy spillovers and capital-skill complementarity in currency unions

Matthias Molnar and Thomas Davoine

No 10275, EcoMod2017 from EcoMod

Abstract: Isolate the impact of skilled labor and capital use in production on cross country spillovers from fiscal policy reforms Multi-country CGE OLG model with three skill classes, endogenous labor supply, flexible prices, distortive taxation and integrated capital markets in a currency union. Output spillovers are small with standard tax reforms but can be sizeable with large government spending increases financed by taxes. Conditional and temporary relaxing of the EU debt ceiling rule could benefit the Union as a whole.

Keywords: 14 EU countries; General equilibrium modeling (CGE); Tax policy (search for similar items in EconPapers)
Date: 2017-07-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://ecomod.net/system/files/DavoineMolnar_SpilloversWP.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekd:010027:10275

Access Statistics for this paper

More papers in EcoMod2017 from EcoMod Contact information at EDIRC.
Bibliographic data for series maintained by Theresa Leary ().