Towards a quantitative theory of automatic stabilizers: The role of demographics

Alexandre Janiak and Paulo Santos Monteiro

Journal of Monetary Economics, 2016, vol. 78, issue C, 35-49

Abstract: Employment volatility is larger for young and old workers than for the prime aged. At the same time, in countries with high tax rates, the share of total hours supplied by young/old workers is lower. These two observations imply a negative correlation between government size and business cycle volatility. This paper assesses in a heterogeneous agent OLG model the quantitative importance of these two facts to account for the empirical relation between government size and macroeconomic stability.

Keywords: Automatic stabilizers; Distortionary taxes; Demographics (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304393215001506
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Towards a quantitative theory of automatic stabilizers: the role of demographics (2014)
Working Paper: Towards a quantitative theory of automatic stabilizers: the role of demographics (2011)
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:eee:moneco:v:78:y:2016:i:c:p:35-49

DOI: 10.1016/j.jmoneco.2015.12.006

Access Statistics for this article

Journal of Monetary Economics is currently edited by R. G. King and C. I. Plosser

More articles in Journal of Monetary Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().