We consider a model with labor market frictions and monopolistic competition in the goods market. We introduce proportional income taxation and unemployment benefits with Government balanced budget constraint. We evaluate the effects of both more competition and higher unemployment benefits. We...

This paper considers a model with labor market frictions and monopolistic competition in the goods market. It also introduces proportional income taxation and unemployment benefits with a balanced government budget constraint. The paper evaluates the effects of more competition and higher...

This paper analyses information from survey data collected in the framework of the Eurosystem's Wage Dynamics Network (WDN) on patterns of firm-level adjustment to shocks. We document that the relative intensity and the character of price vs. cost and wage vs. employment adjustments in response...

This paper analyses information from survey data collected in the framework of the Eurosystem’s Wage Dynamics Network (WDN) on patterns of firm-level adjustment to shocks. We document that the relative intensity and the character of price vs. cost and wage vs. employment adjustments in...