Arbeitspapier

Capital mobility, imperfect labour markets, and the provision of public goods

This paper examines equilibrium tax rates and provision levels of public goods in an international tax competition setting with imperfect labour markets. While earlier research mainly reexamined the result of underprovision of public consumption goods in the decentralised equilibrium, this paper focuses also on the provision of public intermediate goods with different sets of policy instruments available for governments, including a labour tax. In the tax game assuming symmetric jurisdictions, public inputs may also be overprovided if unemployment is caused by a fixed wage above the competitive wage rate. In detail, overprovision of public inputs may occur if governments have a head tax only, or head and capital taxes at disposal. Using comparative static analysis, the paper investigates further the sources of the differences between governmental provision of public consumption goods and public inputs.

Sprache
Englisch

Erschienen in
Series: IAB-Discussion Paper ; No. 9/2013

Klassifikation
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
State and Local Taxation, Subsidies, and Revenue
Trade Unions: Objectives, Structure, and Effects
Thema
Capital mobility
unemployment
provision of public goods and public inputs

Ereignis
Geistige Schöpfung
(wer)
Pauser, Johannes
Ereignis
Veröffentlichung
(wer)
Institut für Arbeitsmarkt- und Berufsforschung (IAB)
(wo)
Nürnberg
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Pauser, Johannes
  • Institut für Arbeitsmarkt- und Berufsforschung (IAB)

Entstanden

  • 2013

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