We investigate experimentally the economic effects of wage taxation to finance unemployment benefits for a closed … the dynamic interaction between the wage tax and unemployment. (ii) Employment is boosted by budget deficits but …

In this paper we investigate experimentally the functioning of a wage tax financed unemployment benefit system on the … development of the budget deficit, unemployment, and some other indicators of economic performance in an international economy. We … facilitate a balancing of the budget has strong adverse effects on unemployment and real GDP. …