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Titel
Would a Euro's depreciation improve the French economy? / Riccardo Magnani (CEPN - Université Paris 13 and CEPII), Luca Piccoli (Universitat de les Illes Balears and IZA), Martine Carré (LEDa - Université Paris-Dauphine), Amedeo Spadaro (Universitat de les Illes Balears, PSE and IZA) ; IZA Institute of Labor Economics
VerfasserMagnani, Riccardo In der Gemeinsamen Normdatei der DNB nachschlagen ; Piccoli, Luca In der Gemeinsamen Normdatei der DNB nachschlagen ; Carré, Martine In der Gemeinsamen Normdatei der DNB nachschlagen ; Spadaro, Amedeo In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, October 2017
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Umfang1 Online-Ressource (56 Seiten) : Diagramme
SerieDiscussion paper ; no. 11094
URNurn:nbn:de:hbz:5:2-140848 Persistent Identifier (URN)
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Would a Euro's depreciation improve the French economy? [0.96 mb]
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Zusammenfassung

In this paper, we use a Micro-Macro model to evaluate the effects of a euros depreciation on the French economy, both at the macro and micro level. Our Micro-Macro model consists of a Microsimulation model that includes an arithmetical model for the French fiscal system and two behavioral models used to simulate the effects on consumption behavior and labor supply, and a multisectoral CGE model which simulates the macroeconomic effects of a reform or a shock. The integration of the two models is made using an iterative (or sequential) approach. We find that a 10% euro's depreciation stimulates the aggregate demand by increasing exports and reducing imports which increases production and reduces the unemployment rate in the economy. At the individual level, we find that the macroeconomic shock reduces poverty and, to a lesser extent, income inequality. In particular, the decrease in the equilibrium wage, determined in the macro model, slightly reduces the available income for people who have already a job, while the reduction in the level of unemployment permits to some individuals to find a job, substantially increasing their income and, in many cases, bringing them out of poverty.