within EMU. We differentiate between three different scenarios: public revenue equalisation, tax harmonisation and a …

Budget-neutral tax wedge reductions rank high in the policy agenda of several EMU member states. Using a New Keynesian … macroeconomic and welfare effects of reducing the firms' and workers' labour tax rates under alternative financing instruments …. Overall, a tax wedge reduction is beneficial in terms of both welfare and output, as long as the financing measure does not …

.2.Consumption tax cuts and transfers to households primarily stabilize private con-sumption, and subsidies prevent firm defaults …

pricing generates a recession initially as production costs rise. Benefits from lower emissions damage materialize only in the … shorter and long-run benefits are larger if more regions levy a price on emissions. However, for non-participating regions …

tax reform partially shifts thetax burden from domestic to foreign producers and lowers marginal costs of domes …-tic production and generates positive domestic macroeconomic effects. In addition,the partial postponement of a household’s tax … tax reform, the policy-induced increase in consumption costs makes retireesand households close to retirement worse off …

modelEMuSeto analyze the effects of financing a labor tax reduction through higher consumption, energy or emissions taxation … taxation as a financing instrument. As demand shifts towards sectors less affected by the tax shift, the aggregate economic …

In a real business cycle model with labor market frictions, we find that a more progressive tax schedule reduces … in a matching environment ("Hosios condition), tax progression improves steadystate welfare up to a certain threshold and … harms it beyond that. However, tax progression increases the costs of business cycles for those consumers who can save and …