Arbeitspapier
The distributional consequences of tax reforms under market distortions
In this paper we examine the importance of imperfect competition in product and labour markets in determining the long-run welfare effects of tax reforms assuming agent heterogeneity in capital holdings. Each of these market failures, independently, results in welfare losses for at least a segment of the population, after a capital tax cut and a concurrent labour tax increase. However, when combined in a realistic calibration to the UK economy, they imply that a capital tax cut will be Pareto improving in the long run. Consistent with the theory of second-best, the two distortions in this context work to correct the negative distributional effects of a capital tax cut that each one, on its own, creates.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 3600
- Klassifikation
-
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Fiscal Policy
- Thema
-
market imperfections
heterogeneous agents
unemployment
tax reform
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Angelopoulos, Konstantinos
Jiang, Wei
Malley, Jim
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:46 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Angelopoulos, Konstantinos
- Jiang, Wei
- Malley, Jim
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2011
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