Arbeitspapier
Optimal Factor Income Taxation in the Presence of Unemployment
According to conventional wisdom internationally mobile capital should not be taxed or should be taxed at a lower rate than labour. An important underlying assumption behind this view is that there are no market imperfections, in particular that labour markets clear competitively. At least for Europe, which has been suffering from high unemployment f or a long time, this assumption does not seem appropriate. This paper studies the optimal factor taxation in the presence of unemployment which results from the union-firm wage bargaining both with optimal and restricted profit taxation when capital is internationally mobile and labour immobile. In setting tax rates the government is assumed to behave as a Stackelberg leader towards the private sector playing a Nash game. The main conclusion is that in the presence of unemployment, the conventional wisdom turns on its head; capital should generally be taxed at a higher rate than labour.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 279
- Classification
-
Wirtschaft
- Subject
-
Optimal factor taxes
union wage bargaining
Stackelberg and Nash games
- Event
-
Geistige Schöpfung
- (who)
-
Koskela, Erkki
Schöb, Ronnie
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2000
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Koskela, Erkki
- Schöb, Ronnie
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2000
Other Objects (12)
Optimal factor income taxation in the presence of unemployment
Redistributive income taxation under outsourcing and foreign direct investment
Timber Supply Incentives and Optimal Forest Taxation
Saving, Income Risk and Interest Rate Wedge: A Note
Optimal income taxation : outsourcing and policy cooperation in a dynamic economy
Labour taxation and employment in trade union models: a partial survey
Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing
Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing
Optimal redistributive taxation and provision of public input goods in an economy with outsourcing and unemployment
Optimal redistributive taxation and provision of public input goods in an economy with outsourcing and unemployment
Equilibrium unemployment under negotiated profit sharing
Equilibrium Unemployment Under Negotiated Profit Sharing
Optimal factor income taxation in the presence of unemployment
Redistributive income taxation under outsourcing and foreign direct investment
Timber Supply Incentives and Optimal Forest Taxation
Saving, Income Risk and Interest Rate Wedge: A Note
Optimal income taxation : outsourcing and policy cooperation in a dynamic economy
Labour taxation and employment in trade union models: a partial survey
Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing
Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing
Optimal redistributive taxation and provision of public input goods in an economy with outsourcing and unemployment
Optimal redistributive taxation and provision of public input goods in an economy with outsourcing and unemployment
Equilibrium unemployment under negotiated profit sharing
Equilibrium Unemployment Under Negotiated Profit Sharing
Optimal factor income taxation in the presence of unemployment
Redistributive income taxation under outsourcing and foreign direct investment
Timber Supply Incentives and Optimal Forest Taxation
Saving, Income Risk and Interest Rate Wedge: A Note
Optimal income taxation : outsourcing and policy cooperation in a dynamic economy
Labour taxation and employment in trade union models: a partial survey
Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing
Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing
Optimal redistributive taxation and provision of public input goods in an economy with outsourcing and unemployment
Optimal redistributive taxation and provision of public input goods in an economy with outsourcing and unemployment
Equilibrium unemployment under negotiated profit sharing