Efficiency of Cuts in Various Taxation Rates to Foster Economic Growth in a Framework of Wages Rigidity
We use a simple DSGE model with prices and wages rigidities to evaluate the efficiency of various fiscal policies intended to sustain economic activity and growth. We show that a fiscal policy aiming at reducing the tax burden would be all the more efficient as wages are more flexible. Besides, a de...
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| Format: | Article |
| Language: | English |
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Athens Institute for Education and Research
2019-01-01
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| Series: | Athens Journal of Business & Economics |
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| Online Access: | https://www.athensjournals.gr/business/2019-5-1-1-Menguy.pdf |