We develop and estimate a microeconometric model of household labour supply in four European countries representative of different economies and welfare policy regimes: Denmark, Italy, Portugal and United Kingdom. We then simulate, under the constraint of constant total net tax revenue, the...

High post-war inflation precipitated a counter reformation in theory from Keynesianism and established the conventional wisdom that a level of unemployment existed at which prices stabilised. The policy application of this notion failed to improve economic performance and, although inflation...