employment or the labour income tax rate leads, in contrast, to a lower wage, a higher interest rate and a higher capital stock … market goods induces a lower interest rate, a higher wage, a lower capital stock and a fall in employment. Cutting public …. Employment rises on impact. If the extra revenues of rolling back the welfare state are handed back via a lower tax rate rather …

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 …

min-max strategy against nature. When applied to a life cycle consumption problem, one finds a rationale for precautionary … saving and a larger sensitivity of changes in consumption to income innovations. It is also shown that consumers with …

unemployment problem, still unsolved and therefore important for policy analysis. Several constraints for unemployment policy …

. Furthermore, they fail to allow for quantity rationing and to model unemployment as a catastrophic event. The macroeconomics based …

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 …