We study optimal taxation in an economy with financial frictions, in which the government cannot directly redistribute towards the agents in need of liquidity but otherwise has access to a complete set of linear tax instruments. We establish a stark result. Provided this is feasible, optimal...

In this paper Markus Knell studies the determinants of unemployment in a two-country- model, where real wages are the outcome of the strategic interaction between various institutional players (firms, unions, central banks). He shows that: (i) the results derived in the recent literature on this...

The search for economically efficient policy instruments designed to promote the diffusion of renewable energy technologies in liberalized markets has led to the introduction of quota-based tradable 'green' certificate (TGC) schemes for renewable electricity. However, there is a debate about the...