Fiscal deficits , asset prices and intergenerational distribution in an open unionized economy

  • Erling Steigum

Abstract

This paper focuses on intergenerational welfare effects of fiscal deficits in an OLG model with wage bargaining and equilibrium unemployment. Changes in wage and profit tax rates alter the intergenerational distribution by affecting capital accumulation as well as the price of a fixed asset. The welfare effect on the first old generation crucially depends… (More)

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