cost of capital for investments in jobs. Third, making shareholders the ultimate owner of the firm provides the best …

of capital for investments in jobs, which harms the position of job seekers, including new entrants to the labour market …

This Paper explores the optimal interaction between the tax system and unemployment compensation in insuring people … against the risks of involuntary unemployment and low ability. To that end, we introduce search unemployment in a model of … and the unemployment benefit) increases if, for efficient agents, the participation constraint (governing job search …

This paper investigates the implications of budgetary policies for consumption and economic growth. We present a model … a rise in government debt, financed by lump-sum taxes, increases the share of private consumption to national income and … reduces the long-run growth rate. We also show that a rise in government consumption financed by lump-sum taxes reduces both …

natural rate of unemployment. In addition, because of differential inflation across countries, real exchange rates become …

In order to explore the optimal taxation of low-skilled labour, we extend the standard model of optimal non …-linear income taxation in the presence of quasi-linear preferences in leisure by allowing for in-voluntary unemployment, job search …, an exogenous welfare benefit, and a non-utilitarian social welfare function. In trading of more low-skilled employment …

We extend the `rational-partisan' model of inflation to allow for the effects of unemployment persistence on the … to the failure of political parties to precommit to price stability, in the light of unemployment persistence. Elections … are associated with higher inflation, with the exception of the Thatcher period. There is no evidence that the Labour …

factor substitution between labour and polluting resources, a shift towards greener preferences boosts employment if labour … policy and involuntary unemployment are derived within a second-best framework in which lump-sum taxes and subsidies are not … available and labour supply is rationed due to a rigid consumer wage. In the absence of factor substitution more environmental …

recent differential unemployment persistence in our sample of countries: first, sluggishness in labour demand, and second …In this paper we present an investigation of unemployment persistence in Japan, the United States and fourteen European … economies. We concentrate on the sources of slow adjustment in the labour market, such as sluggishness in labour demand and …

We extend the `rational partisan model' of inflation and unemployment by introducing inflation and unemployment … stability. The greater aversion of `socialists' to unemployment results in an inflation rate which is higher by five percentage … points than under the more anti-inflationary `conservatives'. Unemployment seems to be independent of the identity of the …