Taking Real Wage Rigidities Seriously: Implications for Optimal Policy Design in a Currency Union

2012 ◽  
Vol 26 (1) ◽  
pp. 37-68 ◽  
Author(s):  
Lenard Lieb
Keyword(s):  
Optimal Policy ◽  
Real Wage ◽  
Policy Design ◽  
Currency Union

scholarly journals The Effectiveness of Employment Vouchers: A Simple Approach

2000 ◽  
Vol 1 (4) ◽  
pp. 385-419 ◽  
Author(s):  
J. Michael Orszag ◽  
Dennis J. Snower
Keyword(s):  
Optimal Policy ◽  
Policy Design ◽  
Unemployment Benefits ◽  
Government Budget ◽  
Long Term Effects ◽  
Short Term ◽  
Wide Range ◽  
The Government ◽  
Hiring And Firing

Abstract This paper explores the optimal design of subsidies for hiring unemployed workers (`employment vouchers' for short) in the context of a simple dynamic model of the labour market. Focusing on the short-term and long-term effects of the vouchers on employment and unemployment, the analysis shows how the optimal policy depends on the rates of hiring and firing, and on the problems of displacement and deadweight. It also examines the roles of the government budget constraint and of the level of unemployment benefits in optimal policy design. We calibrate the model and evaluate the effectiveness of employment vouchers in reducing unemployment for a wide range of feasible parameters.

Optimal Policy Design: A CGE Approach

2017 ◽  
Author(s):  
Martin Cicowiez ◽  
Bernard Decaluwe ◽  
Mustapha K. Nabli
Keyword(s):  
Optimal Policy ◽  
Policy Design

scholarly journals Technical Change, Wage Inequality, and Taxes

2015 ◽  
Vol 105 (10) ◽  
pp. 3061-3101 ◽  
Author(s):  
Laurence Ales ◽  
Musab Kurnaz ◽  
Christopher Sleet
Keyword(s):  
Labor Market ◽  
Income Distribution ◽  
Wage Inequality ◽  
Technical Change ◽  
Optimal Policy ◽  
Policy Design ◽  
Income Taxes ◽  
Policy Response ◽  
Assignment Model ◽  
Optimal Tax

This paper considers the normative implications of technical change for tax policy design. A task-to-talent assignment model of the labor market is embedded into an optimal tax problem. Technical change modifies equilibrium wage growth across talents and the substitutability of talents across tasks. The overall optimal policy response is to reduce marginal income taxes on low to middle incomes, while raising those on middle to high incomes. The reform favors those in the middle of the income distribution, reducing their average taxes while lowering transfers to those at the bottom. (JEL D31, H21, H23, H24, J31, O33)

scholarly journals Real Wage Effects of Japan’s Monetary Policy

ORDO ◽  
2019 ◽  
Vol 2018 (69) ◽  
pp. 177-215
Author(s):  
Sophia Latsos
Keyword(s):  
Monetary Policy ◽  
Real Wage ◽  
Policy Design ◽  
Nominal Wage ◽  
Structural Factors ◽  
Monetary Policy Shocks ◽  
Real Wages ◽  
Wage Effects ◽  
Policy Shocks ◽  
Nominal Wage Rigidity

AbstractThis paper examines real wage effects of monetary policy in Japan, particularly during the past two decades of monetary easing. The literature generally attributes real wage trends to structural factors that influence the nominal wage components, such as the disappearance of downward nominal wage rigidity. The contribution of this paper is twofold. First, it offers a theoretical framework for the transmission of monetary policy shocks to real wages, emphasizing the responsiveness of labor productivity growth to monetary expansion. Secondly, it alludes to the significance of real wage effects of monetary policy for optimal policy design.

The effect of output specification on the optimal policy design for electric utilities

2011 ◽  
Vol 40 (1) ◽  
pp. 62-81 ◽  
Author(s):  
Sergio Jara-Díaz ◽  
Francisco Javier Ramos-Real
Keyword(s):  
Optimal Policy ◽  
Electric Utilities ◽  
Policy Design
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