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We evaluate the effects of permanently reducing labour tax rates in the euro area (EA) by simulating a large-scale open economy dynamic general equilibrium model. The model features the EA as a monetary union, split in two regions (Home and the rest of the EA - REA), the US, and the rest of the...
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-equilibrium unemployment. It argues that a vibrant venture capital market is an important prerequisite for financing structural change and thus … for keeping unemployment low in the ongoing transition to the new economy . It furthermore points out the crucial …
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