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model that features endogenous producer entry, equilibrium unemployment and costly job creation and destruction. Unlike in …, but some of them -- such as job protection reforms -- are found to increase unemployment temporarily. Implementing a broad …
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Using an estimated DSGE model for Hungary, the paper identifies the possible non-Keynesian channels through which a fiscal consolidation may manifest as expansionary. Simulations show that fiscal consolidation policies are typically contractionary. Nevertheless, taking into account some specific...
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