Journal Article

The aggregate effects of advance notice requirements


Abstract: This article analyzes the effects of advance notice requirements on aggregate output, wages, employment, and welfare levels. The author finds that, contrary to firing taxes, advance notice requirements do not lead to reduction in employment. However, they can reduce welfare levels considerably more than firing taxes.

Keywords: Employment (Economic theory); Wages; Taxation;

Access Documents

Authors

    Veracierto, Marcelo

Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 2002

Volume: 26

Issue: Q I

Pages: 19-31