scholarly journals From He-Cession to She-Stimulus? The labor market impact of fiscal policy across gender

SERIEs ◽  
2021 ◽  
Author(s):  
Alica Ida Bonk ◽  
Laure Simon
Keyword(s):  
Labor Market ◽  
Fiscal Policy ◽  
Public Expenditure ◽  
Market Outcomes ◽  
Wage Bill ◽  
Level Data ◽  
Policy Shocks ◽  
Micro Level ◽  
The Government ◽  
Investment Spending

AbstractMen, especially those that are young and less educated, typically bear the brunt of recessions because of the stronger cyclicality of their employment and wages relative to women’s. We study the extent to which fiscal policy may offset or worsen these asymmetric effects across gender. Using micro-level data for the U.S. from the Current Population Survey, we find that the effects of fiscal policy shocks on labor market outcomes depend on the type of public expenditure. Women benefit most from increases in the government wage bill, while men are the main beneficiaries of higher investment spending. Our analysis further reveals that the fiscal component most efficient at closing gender gaps is least suitable for offsetting inequitable business cycle effects across other socioeconomic dimensions.

The macroeconomic effects of fiscal consolidation policies in Greece

2017 ◽  
Vol 9 (1) ◽  
pp. 34-49 ◽  
Author(s):  
Stephanos Papadamou ◽  
Trifon Tzivinikos
Keyword(s):  
Fiscal Policy ◽  
Public Debt ◽  
Wage Policy ◽  
Government Consumption ◽  
Content Type ◽  
Indirect Taxes ◽  
Debt Dynamics ◽  
Policy Shocks ◽  
The Government ◽  
A Minor

Purpose This paper aims to investigate the effects of contractionary fiscal policy shocks on major Greek macroeconomic variables within a structural vector autoregression framework while accounting for debt dynamics. Design/methodology/approach The sign restriction approach is applied to identify a linear combination of government spending and government revenue shock simultaneously while accounting for debt dynamics. Additionally, output and unemployment responses to fiscal shocks under different scenarios concerning the amalgamation of austerity measures are considered. Findings The results indicate that a contractionary consumption policy shock, namely, a 1 per cent decrease in government consumption and a 1 per cent increase in indirect taxes, is preferred, as it produces a minor decrease in output and substantially decreases public debt, while a contractionary wage policy shock is suitable only when the government aims to sharply reduce public debt, as the consequences for the economy are harsh. A contractionary investment policy shock is not recommended, as it triggers a rise in unemployment and a fall in output, while the effect on the public debt is minor. Practical implications Policymakers should focus their efforts on reducing unproductive government consumption on the expenditure side. Concerning revenues, the reinforcement of tax administration is recommended to ensure that indirect taxes will be collected. Originality/value This paper contributes to the existing literature by providing a disaggregated analysis of the effects of fiscal policy actions in Greece by implementing several fiscal policy scenarios and accounting for the level of public debt. All scenarios are in the vein of the economic adjustment programs guidelines.

scholarly journals Fiscal Policy Shocks and the Dynamics of Asset Prices in Turkey

2015 ◽  
Author(s):  
Evrim Tören ◽  
Mehmet Balcılar
Keyword(s):  
Fiscal Policy ◽  
Stock Prices ◽  
Asset Prices ◽  
Housing Prices ◽  
Banking System ◽  
Asset Markets ◽  
Important Relationship ◽  
Policy Shocks ◽  
The Government ◽  
The Impact

Asset markets and the asset prices affect financial institutions, consumers, producers and policy makers while they are making decisions. There is an important relationship not only between the financial market and banking system but also between the housing market and the credit market. Therefore, the study analyzes the impact of fiscal policy on asset prices by using beyasian vector autoregressive models. The sample data has been gathered from the Central Bank of the Republic of Turkey. The aim is to demonstrate the effects of fiscal policy shocks on stock prices and housing prices. The data covers the period between 1988:Q1 and 2014:Q2. Overall, the results confirm that the spending shocks coming from fiscal policy have a greater influence on the stock prices. In addition, the government revenue shocks are more influential on the house prices compared to the stock prices in Turkey.

FISCAL POLICY CHANGES AND LABOR MARKET DYNAMICS IN JAPAN’S LOST DECADE

2021 ◽  
pp. 1-40 ◽  
Author(s):  
Julen Esteban-Pretel ◽  
Xiangcai Meng ◽  
Ryuichi Tanaka
Keyword(s):  
Labor Market ◽  
Fiscal Policy ◽  
Unemployment Rate ◽  
Japanese Economy ◽  
Government Sector ◽  
Labor Market Dynamics ◽  
Lost Decade ◽  
The Government ◽  
Market Variables ◽  
The Impact

Japan’s so-called Lost Decade of the 1990s presents a unique case study of an economy with a recent severe and prolonged recession, with large changes in the labor market and fiscal policy as the main policy available to the government. Japanese unemployment rate surged from 2.1% in 1991 to 5.4% in 2002. Meanwhile, the Japanese economy experienced a rise in government expenditures, while taxes remained fairly stable. This paper quantitatively evaluates the impact of these changes in fiscal policies on labor market variables, in particular the unemployment rate, during the 1990s. We build, calibrate, and simulate a dynamic general equilibrium model with search frictions in the labor market, a productive government sector, heterogenous government spendings, and different categories of taxes. Our model is able to reproduce the paths of the main labor market variables, and the counterfactual experiments show that the changes that took place in the different spending components affected the unemployment rate heterogeneously, although overall they kept unemployment lower than it could have been. We also find that had the government also implemented countercyclical tax policies, unemployment would not have risen as much as it did by 2002.

scholarly journals Effects of trend inflation on monetary policy and fiscal policy shocks in Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Thanh Ha ◽  
Finch Nigel
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Money Supply ◽  
New Keynesian ◽  
Method Of Moment ◽  
Content Type ◽  
Keynesian Model ◽  
Trend Inflation ◽  
Policy Shocks ◽  
The Government

PurposeThis paper analyzes variations in effects of monetary and fiscal shocks on responses of macroeconomic variables, determinacy region and welfare costs due to changes in trend inflation.Design/methodology/approachThe authors develops the New-Keynesian model, which the central banks can employ either nominal interest rate (IR rule) or money supply (MS rule) to conduct monetary policies. They also use their budgets for capital and recurrent spending to conduct fiscal policies. By using simulated method of moment (SMM) for parameter estimation, the authors characterize Vietnam's economy during 1996Q1 -2015Q1.FindingsThe results report that consequences of monetary policy and fiscal policy shocks become more serious if there is a rise in trend inflation. Furthermore, the money supply might not be an effective instrument and using the government budget for recurrent spending produces severe consequences in the high-trend-inflation economy.Originality/valueThis is the first paper that examines the effects of trend inflation on the monetary and fiscal policy implementation in the case of Vietnam.

scholarly journals The Effect of Government Consumption and Government Investment as Intervening Variables to Growth in Indonesia

2020 ◽  
Vol 20 (2) ◽  
pp. 193-207
Author(s):  
Suparjito Suparjito ◽  
Julianus Johnny Sarungu ◽  
Albertus Magnus Soesilo ◽  
Bhimo Rizky Samudro ◽  
Erni Ummi Hasanah
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Budget Deficit ◽  
Partial Least Square ◽  
Analysis Tool ◽  
Government Investment ◽  
Government Consumption ◽  
The Government ◽  
Investment Spending ◽  
The Impact

Fiscal policy and monetary policy are the two macroeconomic policies used by the government and monetary authorities in order to create a stable economy. The budget deficit policy is one form of fiscal policy implemented by the government in order to realize a high level of economic growth, a controlled inflation rate and open up new job opportunities to reduce unemployment. The impact of the implementation of the budget deficit policy on the level of economic growth is a long debate. Neoclassical groups argue that the implementation of budget deficit policies is detrimental to the economy, as it lowers the rate of economic growth. Keynesian groups argue that the implementation of the budget deficit policy is very good for the economy, because it triggers the rate of economic growth by increasing the number of demand for goods and services through increased government spending. While the Richardian people argue that the implementation of budget deficit policy has no effect on the economy. The data used in this study is data from 1981-2014 which consists of budget deficit, government consumption, government investment and economic growth rate. The method of analysis in this research is using Partial Least Square-Path Modeling (PLS-PM) approach with SMART-PLS analysis tool which aims to analyze the direct and indirect influence of the implementation of budget deficit policy toward the level of economic growth through government consumption and government investment. The results show that the implementation of the budget deficit policy can increase economic growth through increased government investment spending. Keywords: budget deficits, government investment, government consumption, growth.

scholarly journals The Priority of Exploiting Fiscal Revenue or Lessening Public Expenditure: Evidence from China

2020 ◽  
Vol 6 (1) ◽  
pp. 54
Author(s):  
Yu kun Wang ◽  
Li Zhang ◽  
We-me Ho
Keyword(s):  
Public Sector ◽  
Fiscal Policy ◽  
Causal Relationship ◽  
Public Expenditure ◽  
Positive Impact ◽  
Fiscal Deficit ◽  
The Past ◽  
Fiscal Revenue ◽  
Fiscal Expenditure ◽  
The Government

In the past 28 years, we find that except for the fiscal revenue of 5,132.1 billion yuan in 2007, which is greater than the fiscal expenditure of 4,978.1 billion yuan, presenting a fiscal surplus, the fiscal expenditure of the rest years is greater than the fiscal revenue, showing the situation of public sector net cash requirement (psncr), especially in 2011, the deficit( the gap between fiscal expenditure and fiscal revenue) is 537.3 billion yuan. Since then, the gap between expenditure and revenue has been increasing with each passing year. In 2015, the fiscal deficit is 2,368 billion yuan. In 2018, the fiscal deficit has been expanded to 3,754.4 billion yuan. In order to avoid the continuous increment of the deficit. This paper discusses the causal relationship between China's fiscal revenue and public expenditure from 1990 to 2018. If fiscal revenue has a positive impact on public expenditure, showing that the government shall reduce fiscal deficit through tax increment. On the contrary, it makes public expenditure continue to expand, leading to the continuous deterioration of fiscal deficit, so as to further decide whether China's future fiscal policy should adopt increasing fiscal revenue or deducting public expenditure policy to reduce the deficit.

scholarly journals Sytuacja kobiet na rynku pracy w Polsce

2018 ◽  
pp. 179-188
Author(s):  
Magdalena KACPERSKA
Keyword(s):  
Labor Market ◽  
Economic Condition ◽  
The State ◽  
Economic Situation ◽  
Human Being ◽  
Macroeconomic Factors ◽  
The Family ◽  
Micro Level ◽  
The Government ◽  
Do So

The situation of women in the labor market in Poland depends on numerous complex micro- and macroeconomic factors. It results from the economic condition of the country and the global economic situation. It is a product of decisions made on a micro level as a result of macro circumstances. When discussing the employment market it should be borne in mind that it is not an ordinary market, such as the market for wellington boots or that of strawber- ries. The ‘product’ here is a human being and an ‘excess’ in the labor market creates a certain unfavorable outcome, namely unemployment. Just as an excess in the supply of wellingtons or strawberries leads to a drop in price, in the labor market it means cuts in salaries or stopping paychecks. That is why one of the tasks of the government is to provide people with the basic opportunity to get a job and earn money. Why then should the state react to the turbulence in the labor market when it does not necessarily have to do so in other markets? The answer is simply that wellingtons and strawberries do not have to provide for themselves and the family.

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