Spatial Variations in Unemployment and Inflation: Some Implications for Fiscal Policy

David B. Johnson, Thomas Beard and Garyl. Carson
Additional contact information
David B. Johnson: Louisiana State University
Garyl. Carson: Northwestern University

Public Finance Review, 1978, vol. 6, issue 4, 455-472

Abstract: In this paper we consider the spatial dispersion of unemployment vis-Ã -vis that of inflation and the implication of this relative dispersion for fiscal policy. Two empirical tests yield results that are consistent with our a priori expectations that inflation is more evenly distributed throughout the economy (i.e., less dispersed spatially) than is unemployment. Using a simple short-run model, we argue that tax policy should be geared to a price stability objective and expenditure policy to a full employment objective. Consequently, the Phillips curve dilemma could be lessened by the appropriate use of tax and expenditure policy.

Date: 1978
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/109114217800600405 (text/html)

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:sae:pubfin:v:6:y:1978:i:4:p:455-472

DOI: 10.1177/109114217800600405

Access Statistics for this article

More articles in Public Finance Review
Bibliographic data for series maintained by SAGE Publications ().