The paper analyzes the determinants of four fiscal trends, observed in many developed countries over the past 40 years: a decline in the corporate tax rate and public investment offset by an increase in the labour income tax and government consumption. Within a simple neoclassical growth model...

I build a dynamic stochastic general equilibrium model with search and matching frictions and both public and private sectors, in order to study the labour market effects of public sector employment and wages. I discuss what is the public sector wage that achieves the social planner's solution...

It is well documented that hazard rates and entry wages decline with unemployment duration and are procyclical. These outcomes may be explained on the basis of workers' invariant characteristics and composition variation with unemployment duration and over the business cycle. To explore it...