In this paper,we assess the impact ofmajor German structural reforms from1999 to 2008 on key macroeconomic variables within a two-country monetary union DSGE model. Bymany, these reforms, especially the Hartz reforms on the labormarket, are considered to be the root of thereafter observed...

This paper studies, in a model with unemployment, how labour market status affects the preferences for public spending, in the form of a public good or subsidies. It then derives the implications for the dynamics of government expenditures under the hypothesis of majority voting. These will...

In a real business cycle model with labor market frictions, we find that a more progressive tax schedule reduces structural unemployment as it fosters long-run incentives for job creation. Because there exists an optimal level of unemployment in a matching environment (“Hosios condition”),...

In a real business cycle model with labor market frictions, we find that a more progressive tax schedule reduces structural unemployment as it fosters long-run incentives for job creation. Because there exists an optimal level of unemployment in a matching environment ('Hosios condition'), tax...

Many people think that the European Union is about the creation of the single market. It is not. After hundreds of years of internal wars and millions of deaths, of tyrannies playing on nationalism and division, we tried to build a different, united Europe. Although they are extremely relevant,...

In this article, we studied the relationship between macroeconomic factors and the observed corporate births for the Romanian economy through the Autoregressive Distributed Lags Model (ADL). We performed a time series analysis that uses monthly data for the period January 2008 – December 2013...

This survey outlines the general lessons of the recent literature on imperfectly competitive macroeconomies for the theory of monetary and fiscal policy. A general framework is presented which encompasses most of the existing literature. Although money is of itself neutral in these models, the...

Dans cet article, nous présentons un survol de la littérature macroéconomique sur la taxation optimale. En premier lieu, nous présentons un modèle très simple à agent représentatif afin de démontrer le résultat principal de cette littérature concernant le taux de taxation sur le...

The paper evaluates the fiscal policy initiatives during the Great Recession in the United States. It argues that, although the nonconventional fiscal policies targeted at the financial sector dwarfed the conventional countercyclical stabilization efforts directed toward the real sector, the...

The paper aims to describe the evolution part of the economy and power to tax in Colombia. It also explains the failure of the government and the problems that have expanded public sector expenditures. Furthermore, we identify the aspects of political economy have influenced the evolution of the...