Sanjay K. Chugh

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Published Articles

Chugh --- JEDC, 2018.

Chugh --- IER, 2016.

Chugh --- RED, 2016.

Chugh --- JMCB, 2015.

Chugh --- JEDC, 2013.

Chugh --- JPE, 2012.

Chugh --- JET, 2010.

Chugh --- MD, 2009.

Chugh --- JME, 2008.

Chugh --- EcLttrs, 2008.

Chugh --- JME, 2007.

Chugh --- RED, 2006.

Recent Working Papers

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Textbook

 

Optimal Fiscal Policy with Labor Selection (with Wolfgang Lechthaler and Christian Merkl).

Journal of Economic Dynamics and Control, 2018.  Vol. 94, p. 142-189. 

https://doi.org/10.1016/j.jedc.2018.06.005

Abstract:

This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. Quantitatively, the volatility of the labor income tax rate is orders of magnitude larger than the "tax-smoothing" results based on Walrasian labor markets, but is a few times smaller than the results based on search and matching labor markets. To understand the results, we develop a welfare-relevant analytic concept of "tightness" for the selection model. This concept of tightness is the source of the decentralized economy's inefficient wage premia between the average newly-hired worker and the marginal newly-hired worker.  Compared to the well-known concept of "labor-market tightness" in the search and matching literature, this new concept of tightness plays a highly similar role, and, like in the matching model, is crucial for understanding efficiency and optimal policy.

PDF file, June 2018 version