Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/38957 
Year of Publication: 
2010
Series/Report no.: 
CESifo Working Paper No. 3099
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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
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