Description
Kyiv School of Economics invites to research seminar “International Labor Flows and Optimal Fiscal Policy” by Sergii Kiiashko that is held within weekly KSE research and policy seminars.
Abstract. This paper studies optimal time-consistent fiscal policy in a small open economy populated by two overlapping generations where young agents have an option to emigrate and there is a possibility that young agents from other countries may immigrate. To this end, we construct a model where cross-country labor flows, that originate from microfounded decisions, where benevolent government makes decisions on debt accumulation, intergenerational redistribution of resources and partial default. We study the interactions between fiscal policy and international labor mobility in a model composed of a continuum of countries that differ with respect to aggregate productivity, population sizes and public debt holdings, which is calibrated to match the patterns associated with the intra-EU labor mobility and debt accumulation. Higher mobility improves allocation of labor, raises global output and has a disciplining effect on accumulation of public debt.
About the speaker. Sergii Kiiashko is an Assistant professor of Kyiv School of Economics since 2018 and a Senior Researcher, Research Unit, Monetary Policy and Economic Analysis Department at NBU. Sergii obtained his Ph.D. degree in Economics from Princeton University (USA). His areas of expertise are: Macroeconomics, International Economics, Sovereign Debt.
Date & Time: November 28, 2019, 17:00.
This seminar is enabled by the financial support from Sweden
