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Title:Labor markets and capital tax competition PDF Logo
Authors:Eichner, Thomas
Upmann, Thorsten
Issue Date:2010
Series/Report no.:CESifo working paper Public Finance 3099
Abstract:Ogawa et al. (2006) analyze capital tax competition in a fixed-wage approach and show that the original results of Zodrow and Mieszkowski (1986) are not preserved in the presence of unemployment. In the present paper we challenge this view and investigate capital tax competition for some arbitrary institutional setting of the labor market. We find that if the labor market is characterized by some efficient bargaining solution, the results of Zodrow and Mieszkowski (1986) are preserved.
Subjects:capital tax competition
unemployment
efficient bargains
JEL:H21
J51
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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