Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/46830 
Year of Publication: 
1997
Citation: 
[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1997
Series/Report no.: 
Kiel Working Paper No. 798
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
Abstract: 
This paper analyzes if unemployment can be reduced through labor tax cuts that are financed in a revenue neutral way through energy tax increases. In contrast to other papers on this topic we consider investment behavior of firms in energy saving technologies, irreversibilities, embodied technological progress and involuntary unemployment. Arguments are presented that reducing the sunk costs instead of the labor tax seems to be the better instrument to reduce energy input and unemployment since this puts more pressure on firms that are using old technologies to adopt a more efficient energy saving technology.
JEL: 
E60
H32
J3
J5
Document Type: 
Working Paper
Document Version: 
Digitized Version

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