scholarly journals GENERAL EQUILIBRIUM FEEDBACK REGARDING THE EMPLOYMENT EFFECTS OF LABOR TAXES

2019 ◽  
Vol 24 (8) ◽  
pp. 2012-2032
Author(s):  
Minchul Yum
Keyword(s):  
Interest Rate ◽  
General Equilibrium ◽  
Labor Supply ◽  
Real Interest Rate ◽  
Heterogeneous Agent ◽  
Agent Model ◽  
Heterogeneous Agent Model ◽  
Labor Tax ◽  
Labor Taxes ◽  
Tax Changes

A higher labor tax rate increases the equilibrium real interest rate and reduces the equilibrium wage in a heterogeneous-agent model with endogenous savings and indivisible labor supply decisions. I show that these general equilibrium (GE) adjustments, in particular of the real interest rate, reinforce the negative employment impact of higher labor taxes. However, the representative-agent version of the model, which generates similar aggregate employment responses to labor tax changes, implies that GE feedback is neutral. The cross-country panel data reveal that the negative association between labor tax rates and the extensive margin labor supply is significantly and robustly weaker in small open economies where the interest rate is less tightly linked to domestic circumstances. This empirical evidence supports the transmission mechanism of labor tax changes for employment in the heterogeneous-agent model.

scholarly journals Risk premiums and macroeconomic dynamics in a heterogeneous agent model

2010 ◽  
Vol 34 (9) ◽  
pp. 1680-1699 ◽  
Author(s):  
Ferre De Graeve ◽  
Maarten Dossche ◽  
Marina Emiris ◽  
Henri Sneessens ◽  
Raf Wouters
Keyword(s):  
Macroeconomic Dynamics ◽  
Heterogeneous Agent ◽  
Risk Premiums ◽  
Agent Model ◽  
Heterogeneous Agent Model

scholarly journals Risk Premiums and Macroeconomic Dynamics in a Heterogeneous Agent Model

2009 ◽  
Author(s):  
Ferre De Graeve ◽  
Maarten Dossche ◽  
Marina Emiris ◽  
Henri R. Sneessens ◽  
Rafael Wouters
Keyword(s):  
Macroeconomic Dynamics ◽  
Heterogeneous Agent ◽  
Risk Premiums ◽  
Agent Model ◽  
Heterogeneous Agent Model

scholarly journals Stylized facts from a threshold-based heterogeneous agent model

2007 ◽  
Vol 57 (2) ◽  
pp. 213-218 ◽  
Author(s):  
R. Cross ◽  
M. Grinfeld ◽  
H. Lamba ◽  
T. Seaman
Keyword(s):  
Stylized Facts ◽  
Heterogeneous Agent ◽  
Agent Model ◽  
Heterogeneous Agent Model

scholarly journals Can a Representative-Agent Model Represent a Heterogeneous-Agent Economy

2009 ◽  
Vol 1 (2) ◽  
pp. 29-54 ◽  
Author(s):  
Sungbae An ◽  
Yongsung Chang ◽  
Sun-Bin Kim
Keyword(s):  
Time Series ◽  
Labor Supply ◽  
Optimality Conditions ◽  
Capital Markets ◽  
Real Wage ◽  
Heterogeneous Agents ◽  
Representative Agent ◽  
Heterogeneous Agent ◽  
Agent Model ◽  
Representative Agent Model

Accounting for observed fluctuations in aggregate employment, consumption, and real wage using the optimality conditions of a representative household requires preferences that are incompatible with economic priors. In order to reconcile theory with data, we construct a model with heterogeneous agents whose decisions are difficult to aggregate because of incomplete capital markets and the indivisible nature of labor supply. If we were to explain the model-generated aggregate time series using decisions of a stand-in household, such a household must have a nonconcave or unstable utility as is often found with the aggregate US data. (JEL E13, E24)

A heterogeneous agent model of asset price dynamics with two time delays

2018 ◽  
Vol 41 (2) ◽  
pp. 379-397 ◽  
Author(s):  
Luca Guerrini ◽  
Akio Matsumoto ◽  
Ferenc Szidarovszky
Keyword(s):  
Time Delays ◽  
Asset Price ◽  
Price Dynamics ◽  
Heterogeneous Agent ◽  
Agent Model ◽  
Heterogeneous Agent Model
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