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We investigate experimentally the economic effects of wage taxation to finance unemployment benefits for a closed … the dynamic interaction between the wage tax and unemployment. (ii) Employment is boosted by budget deficits but …
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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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In this paper we investigate experimentally the functioning of a wage tax financed unemployment benefit system on the … development of the budget deficit, unemployment, and some other indicators of economic performance in an international economy. We … facilitate a balancing of the budget has strong adverse effects on unemployment and real GDP. …
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