We calibrate an infinite-horizon model with endogenous growth and unemployment on actual data from the largest … taxes when financed either raising capital taxation or reducing unemployment subsidies. We find two main results: (i) with … lump-sum transfers, reducing labor taxes and unemployment subsidies is beneficial to both employment and growth, while …

model in Daveri and Maffezzoli (2000), where unemployment is generated by monopolistic unions, and calibrate it to reproduce …

are characterized by a fundamental inconsistency between formal and informal institutions. When formal and informal rules … the new institutional economics is on the consequences of institutions--the rules that structure and constrain economic …. Institutions therefore do affect economic performance, but it is not always obvious which institutional rules dominate. Where …