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Public Finance Effects in an Equilibrium Search Model with Differences in Company Productivity Levels: An Application to Danish Data

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Author Info
Bent Jesper Christensen
Peter Jensen
Michael Svarer
Kim Poulsen
Michael Rosholm () (Department of Management, University of Aarhus, Denmark)

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Abstract

We estimate an equilibrium search model with productivity dispersion between markets and structural unemployment, using Danish data. For women, structural unemployment is relatively more important than frictional unemployment, but for men, frictional unemployment is most important. Overall, frictional unemployment is relatively more important than in an earlier study on Dutch data. We determine a policy that has public finance advantages.

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Publisher Info
Paper provided by School of Economics and Management, University of Aarhus in its series Management Working Papers with number 1999-12.

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Length: 27 pages
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Handle: RePEc:aah:aarmng:1999-12

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Web page: http://www.econ.au.dk/afv/

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This page was last updated on 2009-12-2.

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