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dc.contributor.authorKoskela, Erkkien_US
dc.contributor.authorSchöb, Ronnieen_US
dc.date.accessioned2012-09-21T10:58:05Z-
dc.date.available2012-09-21T10:58:05Z-
dc.date.issued2001en_US
dc.identifier.urihttp://hdl.handle.net/10419/63717-
dc.description.abstractAccording to conventional wisdom internationally mobile capital should not be taxed or should be taxed at a lower rate than labour. An important underlying assumption behind this view is that there are no market imperfections, in particular that labour markets clear competitively. At least for Europe, which has been suffering from high unemployment for a long time, this assumption does not seem appropriate. This paper studies the optimal factor taxation in the presence of unemployment which results from the union-firm wage bargaining both with optimal and restricted profit taxation when capital is internationally mobile and labour immobile. In setting tax rates the government is assumed to behave as a Stackelberg leader towards the private sector playing a Nash game. The main conclusion is that in the presence of unemployment, the conventional wisdom turns on its head; capital should generally be taxed at a higher rate than labour.en_US
dc.language.isoengen_US
dc.publisherThe Research Institute of the Finnish Economy (ETLA) Helsinkien_US
dc.relation.ispartofseriesETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 758en_US
dc.subject.jelH21en_US
dc.subject.jelJ51en_US
dc.subject.jelC70en_US
dc.subject.ddc330en_US
dc.subject.keywordoptimal factor taxesen_US
dc.subject.keywordunion wage bargainingen_US
dc.subject.stwOptimale Besteuerungen_US
dc.subject.stwKapitalertragsteueren_US
dc.subject.stwLohnsteueren_US
dc.subject.stwArbeitslosigkeiten_US
dc.subject.stwLohnverhandlungstheorieen_US
dc.subject.stwSteuerpolitiken_US
dc.subject.stwSpieltheorieen_US
dc.subject.stwVerhandlungstheorieen_US
dc.subject.stwKapitalmobilitäten_US
dc.subject.stwTheorieen_US
dc.titleOptimal factor income taxation in the presence of unemploymenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn328555630en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:ETLA Discussion Papers, Research Institute of the Finnish Economy (ETLA)

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