Efficiency wages, financial market integration, and the fiscal multiplier

• Tipo: Artigo em Revista Científica Internacional
• Data: 2009

Autores

Cenesiz, MA (Autor) FEP; Pierdzioch, C (Autor) Outra

Revista

Título: Journal of International Money and Finance

Vol. 28

Páginas: 853-867

ISSN: 0261-5606

Editora: Elsevier

Indexação

ISI Web of Knowledge - 2 Citações

Scopus - 3 Citações

Outras Informações

ID Authenticus: P-003-G8S

DOI: 10.1016/j.jimonfin.2008.08.013

Abstract (EN): We used a "new-open economy macroeconomic" model featuring a labor-market friction in the form of efficiency wages to analyze the implications of financial market integration for the fiscal multiplier. The fiscal multiplier measures the accumulated effect of fiscal Policy On Output. Conventional wisdom based on the basic textbook version of the classic Mundell-Fleming model suggests that the fiscal multiplier should become smaller as financial markets become more integrated. We show that a labor-market friction in the form of efficiency wages implies that financial market integration should increase the fiscal multiplier.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 15