We study optimal government spending in a business cycle model with frictional unemployment. The Ramsey optimal policy …

This paper analyzes the impact of corporate taxes on structural unemployment, using an applied general equilibrium … model for the European Union. We find that the unemployment and welfare effects of corporate taxes differ considerably among …, and the strength of international spillover effects through foreign direct investment. The effect on unemployment is …

between high wages and low unemployment risk. A higher marginal tax rate shifts the trade-off in favor of low unemployment … risk, whereas a higher tax burden or unemployment benefit has the opposite effect. Changes in unemployment generate fiscal … and that the provision of unemployment insurance justifies a positive marginal tax rate even without income heterogeneity …