Holmlund, Bertil; Kolm, Ann-Sofie - 1997 - This version: 8 January 1997
wage bargaining and monopolistically competitive firms. The economy includes a tradable sector as well as a non …-tradable sector and features unemployment in general equilibrium. Firms in both sectors use labour and an imported polluting factor of … production (energy). A tax on energy, recycled to reduce the payroll tax, will in general affect equilibrium unemployment in this …