While a basic theoretical principle in public economics assumes that individuals’behaviour is fully- optimizer with respect to the introduction of a tax, an increasing body of research is presenting evidence that agents decision-making is often affected by non-negligible cognitive biases ,...

This paper investigates unemployment and labour market rigidities in OECD countries in 1983-1994. The central issue is the taxation-unemployment relationship and whether this relationship is exogenous or simultaneously determined. Hausman specification tests indicate that the impact of taxation...

Based on a description of the German system of taxes and transfers, the incentives to work are analyzed for several groups of the labor force. The effects of the Hartz IVʺ reform (effective from 2005 onwards) on the incentives receive particular attention. It turns out that the marginal...