Recent debates have suggested that taxation is very detrimental to labour force participation and employment. However, some countries - notably the Scandinavian - stand out as contradictions to this view since they have managed to sustain high labour force participation rate despite high tax...

The Danish labour market has undergone a remarkable change during the 1990s with a reduction of the unemployment rate from about 12 per cent in 1993 to less than 6 per cent at the turn of the century. This reflects both a turn in the business cycle but also structural changes related to shifts...

This paper discusses the need and scope for an active fiscal stabilization policy. It is argued that the effectiveness of fiscal policy as a short run stabilizer does not depend on the long run multipliers of (balanced budget) fiscal policies. To the extent that activity can be affected by...