The long term effects of federal government debt accumulation on employment in the United States of America
Despite the financial benefits of government debt, its effectiveness in the economy and the transmission mechanisms of fiscal policy are still on debate. Given this situation, the general goal of this research article was to empirically assess the effects of debt on labor demand. By assuming that de...
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| Format: | Article |
| Language: | English |
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Universidad de Guadalajara
2016-11-01
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| Series: | Expresión Económica |
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| Online Access: | http://expresioneconomica.cucea.udg.mx/index.php/eera/article/view/690 |
| _version_ | 1797693965940555776 |
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| author | Carlos Ignacio García Jiménez |
| author_facet | Carlos Ignacio García Jiménez |
| author_sort | Carlos Ignacio García Jiménez |
| collection | DOAJ |
| description | Despite the financial benefits of government debt, its effectiveness in the economy and the transmission mechanisms of fiscal policy are still on debate. Given this situation, the general goal of this research article was to empirically assess the effects of debt on labor demand. By assuming that debt changes the foreign exchange value of the currency, and that these deviations in the underlying value of money generate price fluctuations of both output and labor, it was hypothesized that when there is an increase in the stock of accumulated debt, more labor is employed in the economy as the currency depreciates. For the period 1973-2010, using time series econometric methods, it was determined that– in The United States of America–the employed labor of the economy is, in the long run, significantly altered by government debt accumulation.
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| first_indexed | 2024-03-12T02:50:06Z |
| format | Article |
| id | doaj.art-484096c91a204762b0a7d41be0e0962f |
| institution | Directory Open Access Journal |
| issn | 1870-5960 |
| language | English |
| last_indexed | 2024-03-12T02:50:06Z |
| publishDate | 2016-11-01 |
| publisher | Universidad de Guadalajara |
| record_format | Article |
| series | Expresión Económica |
| spelling | doaj.art-484096c91a204762b0a7d41be0e0962f2023-09-04T01:49:20ZengUniversidad de GuadalajaraExpresión Económica1870-59602016-11-013510.32870/eera.vi35.690The long term effects of federal government debt accumulation on employment in the United States of AmericaCarlos Ignacio García Jiménez0Louisiana State University and Agricultural & Mechanical CollegeDespite the financial benefits of government debt, its effectiveness in the economy and the transmission mechanisms of fiscal policy are still on debate. Given this situation, the general goal of this research article was to empirically assess the effects of debt on labor demand. By assuming that debt changes the foreign exchange value of the currency, and that these deviations in the underlying value of money generate price fluctuations of both output and labor, it was hypothesized that when there is an increase in the stock of accumulated debt, more labor is employed in the economy as the currency depreciates. For the period 1973-2010, using time series econometric methods, it was determined that– in The United States of America–the employed labor of the economy is, in the long run, significantly altered by government debt accumulation. http://expresioneconomica.cucea.udg.mx/index.php/eera/article/view/690fiscal policypublic financefederal debtemployment |
| spellingShingle | Carlos Ignacio García Jiménez The long term effects of federal government debt accumulation on employment in the United States of America Expresión Económica fiscal policy public finance federal debt employment |
| title | The long term effects of federal government debt accumulation on employment in the United States of America |
| title_full | The long term effects of federal government debt accumulation on employment in the United States of America |
| title_fullStr | The long term effects of federal government debt accumulation on employment in the United States of America |
| title_full_unstemmed | The long term effects of federal government debt accumulation on employment in the United States of America |
| title_short | The long term effects of federal government debt accumulation on employment in the United States of America |
| title_sort | long term effects of federal government debt accumulation on employment in the united states of america |
| topic | fiscal policy public finance federal debt employment |
| url | http://expresioneconomica.cucea.udg.mx/index.php/eera/article/view/690 |
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