unionized and/or regulated labour markets. We regress relative employment and unemployment outcomes on a standard set of labour … market institutions, aggregate unemployment, and period and country effects. This design allows us to control for unmeasured … country-specific factors that affect relative employment and unemployment. We find that the effects of wage-setting structures …

Firms expect certain investment expenditures. Firms realize certain investment expenditures. The difference is an … investment surprise. With the help of the IFO Investment Survey for the German manufacturing sector we measure firms …’ (quantitative) investment expectations and firms’ (quantitative) investment realizations on a yearly basis and construct a panel of …

than a lump-sum subsidy, both cutting public employment and cutting public spending on market goods induce an investment … boom. Making the tax system less progressive by cutting tax credits and the labour income tax rate induces an investment … boom as well. The effects of endogenous growth, adjustment costs for investment and non-Walrasian labour markets on these …

return to one of the most important ideas to emerge from Keynes’ (1936) General Theory; that high involuntary unemployment …

inflation and a permanent reduction in the level of unemployment. In short, we derive a microfounded long-run downward …

fertility, and lower investment in physical and human capital. Furthermore, the feedback effect from economic prosperity to …