The past decade has seen the econometric implementation of macroeconomic multimarket fix-price models for a number of European countries. The procedure in use, the full information maximum likelihood method, unfortunately becomes very cumbersome and seems out of reach when additional features...

The paper studies the optimal tax-subsidy schedules in an economy where the only decision of the agents is to work, or not, with an application to the case of France. Copyright The Econometric Society 2005.