Working Paper: CEPR ID: DP2038
Authors: Fabio Canova; Morten O. Ravn
Abstract: No abstract available
Keywords: redistribution; currency parity; wage parity; subsidies; tax incentives
JEL Codes: E32; H53; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| integration of two economies with differing capital holdings and skill distributions (P19) | substantial macroeconomic adjustments (E65) |
| absence of a welfare state (P16) | capital holders benefit over the business cycle (E32) |
| welfare provisions are present (I38) | long-run depressive consequences (E71) |
| welfare state (I38) | lower output per capita (E23) |
| welfare state (I38) | reduced capital accumulation (E22) |
| welfare state (I38) | increased unemployment rates among lowskilled workers (F66) |
| burden of adjustment falls on high-skilled capital owners (F16) | reduced investment opportunities (G31) |
| reduction of welfare benefits for east Germans (I38) | mitigate negative impacts of redistribution policies (H23) |
| providing tax breaks for western capital owners (P12) | mitigate negative impacts of redistribution policies (H23) |
| policy adjustments (E63) | economic outcomes (F61) |