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We provide a systematic analysis of fiscal consolidation in a medium-scale dynamic general equilibrium model. Our results show that the choice of the consolidation instrument is very important, not only with respect to the short- and long-run output effects of the different consolidation...
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of competitiveness on goods' market affect the economy and welfare? Second, how are labor taxes and redistribution chosen … agreements dominates wage setting in the labor market. "PLAYERS" AND PAYOFFS: The model economy features labor unions that …
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