occurred in Finland in the early 1990s. We find that the sharp drop in real GDP over the period 1990-93 was driven by a … combination of a drop in total factor productivity (TFP) during 1990-92 and of increases in taxes on labor and consumption and … increases in government consumption during 1989-94, which drove down hours worked in Finland. We attempt to endogenize the drop …

occurred in Finland in the early 1990s. We find that the sharp drop in real GDP over the period 1990-93 was driven by a … combination of a drop in total factor productivity (TFP) during 1990-92 and of increases in taxes on labor and consumption and … increases in government consumption during 1989-94, which drove down hours worked in Finland. We attempt to endogenize the drop …

government demand raise output and hours, but lower real product wages and productivity. Markups do not change as a result of …