Research Catalog

Title

Short-Term Distributional Effects of Structural Reforms [electronic resource]: Selected Simulations in a DGSE Framework / Annabelle Mourougane and Lukas Vogel

Author

Mourougane, Annabelle.

Publication

Paris : OECD Publishing, 2008.

Details

Additional Authors

Vogel, Lukas.

Description

25 p.; 21 x 29.7cm.

Summary

This paper examines the short-term distributional effects of a number of tax and labour market reforms in the euro area, drawing on simulations using a micro-founded dynamic general equilibrium model. A heterogeneous household sector with two groups of consumers is considered. The first group maximises intertemporal utility over an infinite horizon in the presence of habit persistence. The second group is liquidity constrained and has no access to financial markets for intertemporal income transfers. It thus spends its disposable income entirely on current consumption. Although the examined reforms are estimated to boost aggregate consumption and output immediately after implementation, they have sizeable distributional effects. In particular, liquidity-constrained households may incur transitional losses after a cut in the benefit replacement ratio. Lowering employment and/or price adjustment costs could markedly reduce these short-term costs. A suitable compensation scheme could also reduce the uneven distribution of transitional losses, but at the expense of lower aggregate gains in the long run.

Series Statement

OECD Economics Department Working Papers, 1815-1973 ; no.648

Uniform Title

OECD Economics Department Working Papers, no.648.

Subject

Economics

LCCN

10.1787/234214803027

OCLC

oecd-lib-001100

Author

Mourougane, Annabelle.

Title

Short-Term Distributional Effects of Structural Reforms [electronic resource]: Selected Simulations in a DGSE Framework / Annabelle Mourougane and Lukas Vogel

Imprint

Paris : OECD Publishing, 2008.

Series

OECD Economics Department Working Papers, 1815-1973 ; no.648

OECD Economics Department Working Papers, 1815-1973 ; no.648.

Connect to:

http://dx.doi.org/10.1787/234214803027

Indexed Term

Economics

Added Author

Vogel, Lukas.

Other Standard Identifier

10.1787/234214803027 doi