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• W1583696582 abstract "Using the DGE model of the Finnish Economy (the 'Aino' model), we study the response of the economy to reforms in both labour and product markets. The reforms are two-fold. We assume that the wage mark-up, ie the monopoly power of wage-setters is gradually reduced by 5 percentage points. At the same time, the degree of competition is increased, ie price margins are exogenously reduced by 2 percentage points. These reforms imply a very favourable outcome of the economy. Both consumption and employment increases permanently and the reforms are welfare enhancing. Public balances improve giving room for 1.5 percentage point cut in income taxes. Our simulation exercises clearly demonstrate that such reforms may help in financing the future fiscal burden of an ageing population." @default.
• W1583696582 created "2016-06-24" @default.
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• W1583696582 date "2006-01-01" @default.
• W1583696582 modified "2023-09-25" @default.
• W1583696582 title "Labour and Product Market Competition in a Small Open Economy − Simulation Results Using a DGE Model of the Finnish Economy" @default.
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• W1583696582 doi "https://doi.org/10.2139/ssrn.1010631" @default.
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