We study optimal government spending in a business cycle model with frictional unemployment. The Ramsey optimal policy …

unemployment benefits reduce unemployment? Using a recent labour market reform in Germany as background, we find that an enhanced … effectiveness of the PEA explains about 20% of the observed post-reform unemployment decline. The role of unemployment benefit … the PEA could have had an even higher impact on unemployment reduction if there had been less focus on long …

active labor market policy, are only partly reported as unemployment. A review of the evidence on the effectiveness of labor … have alleviated social burdens from unemployment. Discussing what causes the high unemployment in the east, we claim that … effects of wage policy have been overrated. Differences in unemployment rates are also the result of more ample labor supply …