constant rate which is the higher, the lower are the labour tax rate and the unemployment rate. Both government Ponzi games and …, an increase in the debt-to-capital ratio is accompanied by higher taxes, a rise in unemployment and lower economic growth. …

This paper examines positive and normative implications of efficiency-wage induced unemployment within a model of … and the rate of unemployment. The sign of this correlation is shown to be given by the intersectoral wage differential …. Despite the existence of unemployment, decisive positive properties of the full-employment model are preserved. However …