In order to alleviate unemployment it is often recommended to reduce social security contributions (SSC) and to … compensate for the ensuing loss in revenues by a rise in the value-added tax (VAT). Assuming unemployment to be caused by … neutralised, for example, by imposing a constant wedge, the employment impact will depend on the nature of the unemployment …

Up to now there was a general conviction that increasing unemployment and inflation have a negative impact on the … the Schröder government. While the results for the former show the known pattern, neither unemployment nor inflation is … significant in the equations of the Schröder government, the latter has even the wrong sign. The missing impact of unemployment …