This paper develops a model with multiple steady states (low tax and unemployment rate versus high tax and unemployment rate) in which equilibrium selection is not conditioned on a sunspot variable. Instead, large enough shocks initiate unavoidable transitions from one regime to the other. The...

This paper employs stochastic simulations of a small structural rational expectations model to investigate the consequences of the zero bound on nominal interest rates. We find that if the economy is subject to stochastic shocks similar in magnitude to those experienced in the U.S. over the...

This study aims at describing the impact of the rulings of the European Court of Justice (the “Court”) on the Members States’ direct tax systems. The study contains materials available until December 31, 2007. The case-law of the Court is characterized by its continuing development, in a...