In a neoclassical growth model with monopolistic competition in the product market, distortionary taxes, and debt, countercyclical income tax rates can reduce the volatility of output, consumption, and investment. The variability of employment however is a non-monotonic function of the income...

In a neoclassical growth model with monopolistic competition in the product market, the presence of cyclical factor utilization enhances the stabilization role of countercyclical taxes. The costs of varying capital utilization take the form of varying rates of depreciation, which in turn have...

Worker movements played a crucial role in making workplaces safer. Workplace safety is costly for firms but increases labour supply. A laissez-faire approach leav- ing safety of workplaces unknown is suboptimal. Safety standards set by better- informed trade unions are output and welfare...