differences in labor market institutions across the same set of countries. It does that by using a DSGE model for a currency area … with sticky prices and labor market frictions. We show that differences in labor market institutions account well for … cyclical inflation differentials. The proposed mechanism is a supply side one in which differences in labor market institutions …

We characterize the Laffer curves for labor taxation and capital income taxation quantitatively for the US, the EU-14 … benchmark parameters, we find that the US can increase tax revenues by 30% by raising labor taxes and 6% by raising capital …