Efficacité de la politique économique et position dans le cycle: le cas de la défiscalisation des heures supplémentaires en France

Eric Heyer

No 2010-26, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)

Abstract: The economic situation of all the major developed countries has changed significantly during the 2007-2010 period. Yet many economic policies have been kept in place. This is true in particular of a key measure in French government policy: tax reductions on overtime hours and their exemption from social charges. In this article we propose simulations of this scheme based on the economic context in which it is implemented. According to our simulations, this kind of measure is pro-cyclical and therefore poorly suited to the current situation of the French economy. Furthermore, even in the case of good conditions, the scheme would not be funded. Without financing, this measure would widen the deficit and would amount to a fiscal stimulus. Financing it through an increase in levies would radically change its nature.

Keywords: Macroeconometric model; economic cycle; NAIRU; Phillips curve; hysteresis (search for similar items in EconPapers)
JEL-codes: C13 C22 E24 E32 J08 (search for similar items in EconPapers)
Date: 2010-10
New Economics Papers: this item is included in nep-cmp
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Efficacité de la politique économique et position dans le cycle: le cas de la défiscalisation des heures supplémentaires en France (2010)
Working Paper: Efficacité de la politique économique et position dans le cycle: le cas de la défiscalisation des heures supplémentaires en France (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:fce:doctra:1026

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