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Macroeconomic Externalities: Are Pigovian Taxes the Answer?
Stockholms universitet, Samhällsvetenskapliga fakulteten, Institutet för internationell ekonomi.
Department of Economics, Uppsala University.
1991 (engelsk)Rapport (Annet vitenskapelig)
Abstract [en]

Basic welfare economics tells us that many types of externalities can be remedied by proper use of corrective taxes and subsidies. This paper shows that this notion also extends to the macroeconomic externalities discussed in recent Keynesian literature on nominal price rigidities. The derived policy rules are lindred in spirit to standard Keynesian policy prescriptions: Progressive income taxes may serve a useful role in combating wasteful economic fluctuations. However, unlike older fix-price models of automatic stabilizers, progressive taxes work in our monopolistic economy because they directly affect the pricing mechanism.

sted, utgiver, år, opplag, sider
Stockholm: IIES , 1991. , s. 23
Serie
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 487
HSV kategori
Identifikatorer
URN: urn:nbn:se:su:diva-41793OAI: oai:DiVA.org:su-41793DiVA, id: diva2:337763
Tilgjengelig fra: 2010-08-09 Laget: 2010-08-09 Sist oppdatert: 2010-08-09bibliografisk kontrollert

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