3940414243444542 of 85
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Inequality and Macroeconomic Policy: Essays on Climate, Immigration and Fiscal Intervention
Stockholm University, Faculty of Social Sciences, Department of Economics.
2018 (English)Doctoral thesis, monograph (Other academic)
Abstract [en]

This thesis consists of four self-contained essays in economics.

Optimal Climate Policy with Household Wealth Inequality. Policy makers concerned with setting optimal carbon taxes to address climate change externalities often employ integrated assessment models (IAMs). While these models differ on their assumptions of climate damage impacts, discounting and technology, they conform on their assumption of complete markets and a representative household. In the face of global inequality and significant vulnerability of asset poor households, I relax the complete markets assumption and introduce a realistic degree of global household inequality. A simple experiment of introducing a range of global carbon taxes shows a household's position on the global wealth distribution predicts the identity of their most preferred carbon price.

Immigration Shocks, Equilibrium Unemployment and Inequality. The purpose of this paper is to present a proof-of-concept model for assessing the impact of immigration shocks on a country's equilibrium unemployment, wages and inequality. The model implements labour market matching in the workhorse heterogeneous agent macro model with precautionary savings. In this setting, I perform several transition experiments exploring the channels and mechanisms through which a substantial immigration shock affects macroeconomic outcomes, including conditional welfare and economic integration. I find that the identity of the immigration cohort, as well as, features of the receiving economy matter for both the magnitude and direction of the response.

Fiscal Multipliers in the 21st Century. Fiscal multipliers appear to vary greatly over time and space. Based on VARs for a large number of countries, we document a strong correlation between wealth inequality and the magnitude of fiscal multipliers. In an attempt to account for this finding, we develop a life-cycle, overlapping-generations economy with uninsurable labor market risk. We calibrate our model to match key characteristics of a number of OECD economies, including the distribution of wages and wealth, social security, taxes, and government debt and study how a fiscal multiplier depends on various country characteristics. We find that the fiscal multiplier is highly sensitive to the fraction of the population who face binding credit constraints and also to the average wealth level in the economy. These findings together help us generate a cross-country pattern of multipliers that is quite similar to that in the data.

Fiscal Consolidation Programs and Income Inequality. Following the Great Recession, many European countries implemented fiscal consolidation policies aimed at reducing government debt. Using three different empirical approaches, we document a strong positive relationship between higher income inequality and stronger recessive impacts of fiscal consolidation. To explain this finding, we develop a life-cycle, overlapping generations economy with uninsurable labor market risk. We calibrate our model to match key characteristics of a number of European economies, including the distribution of wages and wealth, and study the effects of fiscal consolidation programs. We find that higher income risk induces precautionary savings behavior, which decreases the proportion of credit-constrained agents in the economy. Our model produces a cross-country correlation between inequality and the fiscal consolidation multipliers in line with the data.

Place, publisher, year, edition, pages
Stockholm: Department of Economics, Stockholm University , 2018.
Series
Dissertations in Economics, ISSN 1404-3491 ; 2018:7
Keywords [en]
Macroeconomics, inequality, climate change, carbon taxation, immigration, labour market, fiscal multipliers, austerity
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:su:diva-161738ISBN: 978-91-7797-524-3 (print)ISBN: 978-91-7797-525-0 (electronic)OAI: oai:DiVA.org:su-161738DiVA, id: diva2:1261300
Public defence
2018-12-20, De Geersalen, Geovetenskapens hus, Svante Arrenhius väg 14, Stockholm, 10:00 (English)
Opponent
Supervisors
Available from: 2018-11-27 Created: 2018-11-06 Last updated: 2018-11-22Bibliographically approved

Open Access in DiVA

Inequality and Macroeconomic Policy(3945 kB)11 downloads
File information
File name FULLTEXT01.pdfFile size 3945 kBChecksum SHA-512
f0911d55e740fe5a77085ed4090428107eda66dbc9914176cdc969d6c79bb3f4d6b1b42c44d39a9bf99d1de7d7a5d91ae02e8bb0fa838f853f5e8f77cfce1d72
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Malafry, Laurence
By organisation
Department of Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 11 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 304 hits
3940414243444542 of 85
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf