Progressive Taxation, Nominal Wage Rigidity, and Business-Cycle (De)stabilization
2017/06/02
研討會日期 : 2017-06-02
時間 : 14:30
主講人 : Professor Jang-Ting Guo
主持人 : Professor Juin-Jen Chang
地點 : Conference Room B110
演講者簡介 : Professor Guo received his Ph.D. from University of California, Los Angeles in 1993. He is currently a Professor of the University of California, Riverside. His research interests include Sunspots, Self-Fulfilling Beliefs in Real Business Cycle Models, Indeterminacy and Stabilization Policy, Fiscal Policy and Macroeconomic Stability, Macroeconomic Aspects of Public Finance, Dynamic Optimal Nonlinear Income Taxation, International Real Business Cycles. Monetary Stability and Endogenous Growth, Macroeconomic Effects of Environmental Quality, Dynamic Optimal Fiscal Policy and Business Cycles, Monopolistic Competition, Firm Size and Welfare, Income Inequality and Economic Growth, and Exchange Rate Exposure of Firms.
演講摘要 : This paper analytically examines the business-cycle (de)stabilization effects of progressive and flat income taxation in a stylized New-Keynesian model with nominal wage rigidity. When aggregate fluctuations are driven by shocks to money supply, constant tax is always an automatic destabilizer, whereas progressive tax also destabilizes the macroeconomy if labor supply is sufficiently inelastic. The same business-cycle (de)stabilization results continue to hold when the economy is subject to shocks to firms' production technology or to government spending on goods and services. On the contrary, progressive as well as flat taxation will operate like an automatic stabilizer under a multiplicative preference shock that affects households' marginal utility of consumption.
