Arbeitspapier
Optimal Factor Taxation under Wage Bargaining - A Dynamic Perspective
We consider the issue of steady-state optimal factor taxation in a Ramsey-type dynamic general equilibrium setting with two distinct distortions: i) taxes on capital and labour are the only available tax instruments for raising revenues, and ii) labour markets are subject to a static inefficiency resulting from wage bargaining. If considered in isolation, under broad assumptions the two distortions create conflicting demands on the wage tax, while calling for a zero capital tax. By combining the two distortions, we arrive at the conclusion that both instruments should be used, implying that the zero-capital tax result in general is no longer valid under imperfectly competitive labour markets.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 836
- Klassifikation
-
Wirtschaft
- Thema
-
optimal taxation
imperfectly competitive labour markets
capital accumulation
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Koskela, Erkki
von Thadden, Leopold
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2003
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Koskela, Erkki
- von Thadden, Leopold
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2003