Fiscal policy and unemployment
By: Marco Battaglini, Stephen Coate
Contributors: Coate, Stephen; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17562; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17562.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper explores the interaction between fiscal policy and unemployment.  It develops a dynamic economic model in which unemployment can arise but can be mitigated by tax cuts and public spending increases.  Such policies are fiscally costly, but can be financed by issuing government debt.  In the context of this model, the paper analyzes the simultaneous determination of fiscal policy and unemployment in long run equilibrium.  Outcomes with both a benevolent government and political decision-making are studied.  With political decision-making, the model yields a simple positive theory of fiscal policy and unemployment"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 1/10/2012.

Includes bibliographical references.

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