This discussion paper led to a publication in <A href="http://www.springerlink.com/content/n3w45lxj307m883m/">'Public Choice'</A> 109(3-4) 371-94.<P>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...</p></a>

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 find support for the hypothesis that...