search query: @author Koskela, E. / total: 22
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| Author: | Koskela, E. Viren, M. |
| Title: | Is there a Laffer curve between aggregate output and public sector employment? |
| Journal: | Empirical Economics
2000 : VOL. 25:4, p. 605-622 |
| Index terms: | PUBLIC SECTOR MODELS EMPLOYMENT |
| Language: | eng |
| Abstract: | This paper develops a model of the relationship between public sector employment, total output and aggregate real demand in market prices, where public employment has a positive productivity effect on private output. Public employment crowds out private employment and output because its increase induces higher wages and taxes. While public employment affects total output and aggregate real demand in an a priori ambiguous way, numerical simulations suggest that the relationship may be nonlinear; positive, when public sector is "small" and negative, when it is "large". The paper uses the annual data from 22 OECD countries over the period 1960-1996. |
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