This paper derives and estimates an aggregate Euler consumption equation which allows one to compare the importance of collateral constraints and non-separability of consumption and leisure as alternative sources of excess sensitivity of consumption to current income. Estimation results suggest...

People in the Nordic countries of Denmark, Finland, Iceland and Sweden work more than the countries’ high tax rates would lead us to predict. This observation is explained by a shared belief system that emphasises women’s rights to labour market participation.

Subsidies to commercial R&D can be given as R&D tax credits or through direct grants. Tax incentives have become an increasingly popular policy tool over the last decades. In this note I discuss the pros and cons of the two forms of subsidies in light of Norway’s experience with R&D policy. I...