We present a model that integrates the discrete working time choice of heterogenous households into a general equilibrium setting where wages are determined by sectoral bargaining between firms and trade unions. The model is calibrated to German micro and macro data. We then use it to analyse a...

Die US-Wirtschaft droht – wie andere Industrieländer – nach kurzzeitigem Aufschwung wieder in die Rezession abzurutschen. Der US-Präsident hatte vorgesehen, mit fiskalischen Maßnahmen diesen Abschwung aufzuhalten. Die Autoren untersuchen den Zusammenhang von zyklischen Krisen und...

Changing the income tax progressivity in labour markets with collective wage bargaining generates a trade-off. On the one hand, higher progressivity distorts individual labour supply decisions at the hours-of-work margin, on the other hand, it reduces unemployment by exerting downward pressure...

Economic thought on climate policy as an instance of environmental regulation is strongly influenced by the principle of a uniform carbon price. Economists acknowledge that this principle breaks down in a “second-best” world with other distortions, such as taxes and market power in domestic...