Arbeitspapier
Fiscal Policy, Economic Integration and Unemployment
Fiscal policy is examined in a model of an open economy which is characterised by unemployment caused by efficiency wages. It is shown that the conventional conclusion, according to which mobile capital is untaxed in the presence of wage taxation, is not generally valid. A positive capital tax allows to indirectly tax profits, thereby mitigating unemployment through the reduction in the effective tax burden on labour. It is argued that these policy conclusions are qualitatively unaffected by the cause of unemployment. Moreover, the welfare loss from labour market imperfections increases when tax bases become internationally mobile, which suggests an increasing relevance of domestic labour market reforms.
- Sprache
-
Englisch
- Erschienen in
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Series: EPRU Working Paper Series ; No. 2002-05
- Klassifikation
-
Wirtschaft
- Thema
-
Finanzpolitik
Optimale Besteuerung
Kapitalertragsteuer
Arbeitslosigkeit
Effizienzlohn
Steuerwettbewerb
Kleine offene Volkswirtschaft
Wirtschaftsintegration
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Eggert, Wolfgang
Goerke, Laszlo
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Copenhagen, Economic Policy Research Unit (EPRU)
- (wo)
-
Copenhagen
- (wann)
-
2002
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Eggert, Wolfgang
- Goerke, Laszlo
- University of Copenhagen, Economic Policy Research Unit (EPRU)
Entstanden
- 2002