This paper studies the fiscal costs of unemployment insurance (UI). It surveys alternative methods used in the literature to estimate the impact of UI on government budgets and compares them within a unified framework that incorporates behavioral responses, wage effects, and fiscal...

High and persistent inflation, observed in Europe in the wake of the COVID-19 pandemic and the energy crisis triggered by Russiaʼs war of aggression against Ukraine, can substantially shift tax burdens through fiscal drag - the tendency for rising nominal incomes to push taxpayers into higher...

High and persistent inflation, observed in Europe in the wake of the COVID-19 pandemic and the energy crisis triggered by Russiaʼs war of aggression against Ukraine, can substantially shift tax burdens through fiscal drag - the tendency for rising nominal incomes to push taxpayers into higher...

We study how individuals' views on current and future levels of income inequality change during periods of expansionary fiscal policy. In a randomized controlled trial (RCT), we provide information on fiscal expansion to a representative sample of the German population. Our findings reveal that...

How does the fiscal framework affect the central bank's ability to stabilize output and inflation? The textbook answer, which assumes Ricardian households, recommends that fiscal adjustment should be fast enough to allow for monetary dominance. We instead argue that, with non-Ricardian...