Taxation and unemployment: an applied general equilibrium approach
Abstract
We present an applied general equilibrium modelling approach to analyse employment and unemployment effects of labour tax cuts in an economy where wages are determined through firm-union bargaining at the sectoral level. In such a labour market regime, simulations for Germany show that labour tax policies can make only a small contribution to alleviating the problem of persistent unemployment.(This abstract was borrowed from another version of this item.)
Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by Elsevier in its journal Economic Modelling.
Volume (Year): 22 (2005)
Issue (Month): 1 (January)
Pages: 81-108
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30411
Related research
Keywords:Other versions of this item:
- Christoph Boehringer & Stefan Boeters & Michael Feil, 2004. "Taxation and Unemployment: An Applied General Equilibrium Approach," CESifo Working Paper Series 1272, CESifo Group Munich.
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lockwood, Ben & Manning, Alan, 1993. "Wage setting and the tax system theory and evidence for the United Kingdom," Journal of Public Economics, Elsevier, vol. 52(1), pages 1-29, August.
- Pissarides, Christopher A., 1998.
"The impact of employment tax cuts on unemployment and wages; The role of unemployment benefits and tax structure,"
European Economic Review,
Elsevier, vol. 42(1), pages 155-183, January.
- Christopher A. Pissarides, 1997. "The Impact of Employment Tax Cuts on Unemployment and Wages: The Role of Unemployment Benefits and Tax Structure," CEP Discussion Papers dp0361, Centre for Economic Performance, LSE.
- Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
- Bovenberg, A Lans & de Mooij, Ruud A & Graafland, Johan J, 1998.
"Tax Reform and the Dutch Labour Market: An Applied General Equilibrium Approach,"
CEPR Discussion Papers
1983, C.E.P.R. Discussion Papers.
- Bovenberg, A. Lans & Graafland, Johan J. & de Mooij, Ruud A., 2000. "Tax reform and the Dutch labor market: an applied general equilibrium approach," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 193-214, October.
- Bovenberg, A.L. & Graafland, J.J. & Mooij, R.A. de, 2000. "Tax reform and the Dutch labour market: An applied general equilibrium approach," Open Access publications from Tilburg University urn:nbn:nl:ui:12-83974, Tilburg University.
- A. Lans Bovenberg & Johan J. Graafland & Ruud A. de Mooij, 1998. "Tax Reform and the Dutch Labor Market: An Applied General Equilibrium Approach," NBER Working Papers 6693, National Bureau of Economic Research, Inc.
- Sorensen, Peter Birch, 1999. "Optimal tax progressivity in imperfect labour markets," Labour Economics, Elsevier, vol. 6(3), pages 435-452, September.
- repec:fth:bfdipa:19/2001 is not listed on IDEAS
- Patrick J. Kehoe & Timothy J. Kehoe, 1994. "A primer on static applied general equilibrium models," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr, pages 2-16.
- Shoven,John B. & Whalley,John, 1992.
"Applying General Equilibrium,"
Cambridge Books,
Cambridge University Press, number 9780521319867.
- Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550.
- John M. Abowd & Francis Kramarz & David N. Margolis, 1999.
"High Wage Workers and High Wage Firms,"
Econometrica,
Econometric Society, vol. 67(2), pages 251-334, March.
- Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995. "High-Wage Workers and High-Wage Firms," Cahiers de recherche 9503, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995. "High-Wage Workers and High-Wage Firms," Cahiers de recherche 9503, Universite de Montreal, Departement de sciences economiques.
- John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High-Wage Workers and High-Wage Firms," CIRANO Working Papers 94s-23, CIRANO.
- John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High Wage Workers and High Wage Firms," NBER Working Papers 4917, National Bureau of Economic Research, Inc.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991.
"Unemployment: Macroeconomic Performance and the Labour Market,"
OUP Catalogue,
Oxford University Press, number 9780198284345, September.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, September.
- Christoph Böhringer & Wolfgang Wiegard & Collin Starkweather & Anna Ruocco, 2003. "Green Tax Reforms and Computational Economics A Do-it-yourself Approach," Computational Economics, Society for Computational Economics, vol. 22(1), pages 75-109, August.
- Fuest, Clemens & Huber, Bernd, 2000. "Is tax progression really good for employment? A model with endogenous hours of work," Labour Economics, Elsevier, vol. 7(1), pages 79-93, January.
- Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "Introduction to "A General Equilibrium Model for Tax Policy Evaluation"," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 1-5 National Bureau of Economic Research, Inc.
- Falk, Martin & Koebel, Bertrand M., 1997. "The Demand of Heterogeneous Labour in Germany," ZEW Discussion Papers 97-28, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Boeters, Stefan, 2002. "Tax Progressivity and the Trade Union's Fallback-Option," ZEW Discussion Papers 02-15, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- P. B. Sørensen, 1997. "Public finance solutions to the European unemployment problem?," Economic Policy, CEPR & CES & MSH, vol. 12(25), pages 221-264, October.
- Bernheim, B. Douglas, 2002.
"Taxation and saving,"
Handbook of Public Economics,
in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 18, pages 1173-1249
Elsevier.
- B. Douglas Bernheim, 1999. "Taxation and Saving," Working Papers 99007, Stanford University, Department of Economics.
- B. Douglas Bernheim, 1999. "Taxation and Saving," NBER Working Papers 7061, National Bureau of Economic Research, Inc.
- Holzer, Harry J & Katz, Lawrence F & Krueger, Alan B, 1991. "Job Queues and Wages," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 739-68, August.
- Clemens Fuest & Bernd Huber, .
"Tax Progression and Human Capital in Imperfect Labour Markets,"
EPRU Working Paper Series
98-03, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Clemens Fuest & Bernd Huber, 2001. "Tax Progression and Human Capital in Imperfect Labour Markets," German Economic Review, Verein für Socialpolitik, vol. 2(1), pages 1-18, 02.
- Koskela, Erkki & Vilmunen, Jouko, 1996. "Tax progression is good for employment in popular models of trade union behaviour," Labour Economics, Elsevier, vol. 3(1), pages 65-80, August.
- John Hutton & Anna Ruocco, 1999. "Tax Reform and Employment in Europe," International Tax and Public Finance, Springer, vol. 6(3), pages 263-287, August.
- Koskela , Erkki, 2001. "Labour taxation and employment in trade union models: A partial survey," Research Discussion Papers 19/2001, Bank of Finland.
- Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September.
- Michael Hoel, 1990. "Efficiency wages and income taxes," Journal of Economics, Springer, vol. 51(1), pages 89-99, February.
- Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "A General Equilibrium Model for Tax Policy Evaluation," NBER Books, National Bureau of Economic Research, Inc, number ball85-1, April.
- Pereira, Alfredo M. & Shoven, John B., 1988. "Survey of dynamic computational general equilibrium models for tax policy evaluation," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 401-436.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Peichl, Andreas, 2008.
"The Benefits of Linking CGE and Microsimulation Models: Evidence from a Flat Tax Analysis,"
IZA Discussion Papers
3715, Institute for the Study of Labor (IZA).
- Peichl, Andreas, 2008. "The benefits of linking CGE and Microsimulation Models - Evidence from a Flat Tax analysis," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 08-6, University of Cologne, FiFo Institute for Public Economics.
- Gustavo Adolfo HERNANDEZ DIAZ, 2011. "Impuestos parafiscales y mercado laboral: Un análisis de Equilibrio General Computable," ARCHIVOS DE ECONOMÃA 008954, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
- Mouez Fodha & Patricia Le Maitre, 2007.
"Transition démographique, chômage involontaire et redistribution intergénérationnelle : simulations dans un cadre d'équilibre général à générations imbriquées,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
halshs-00144652, HAL.
- Mouez Fodha & Patricia Le Maitre, 2007. "Transition démographique, chômage involontaire et redistribution intergénérationnelle : simulations dans un cadre d'équilibre général à générations imbriquées," Documents de travail du Centre d'Economie de la Sorbonne v07011, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Robert Küster & ingo Ellersdorfer & Ulrich Fahl, 2007. "A CGE-Analysis of Energy Policies Considering Labor Market Imperfections and Technology Specifications," Working Papers 2007.7, Fondazione Eni Enrico Mattei.
- Michaelis, Jochen & Birk, Angela, 2004.
"Employment and Growth Effects of Tax Reforms,"
HWWA Discussion Papers
283, Hamburg Institute of International Economics (HWWA).
- Michaelis, Jochen & Birk, Angela, 2006. "Employment- and growth effects of tax reforms," Economic Modelling, Elsevier, vol. 23(6), pages 909-925, December.
- Birk, Angela & Michaelis, Jochen, 2004. "Employment- and Growth Effects of Tax Reforms," Center for European, Governance and Economic Development Research Discussion Papers 29, University of Goettingen, Department of Economics.
- Bart Capéau & André De coster & Kris De Swerdt & Kristian Orsini, 2008.
"Welfare effects of alternative financing of social security. Some calculations for Belgium,"
Center for Economic Studies - Discussion papers
ces0812, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Capéau, Bart & Decoster, André & De Swerdt, Kris & Orsini, Kristian, 2008. "Welfare effects of alternative financing of social security. Some calculations for Belgium," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/196761, Katholieke Universiteit Leuven.
- repec:ese:iserwp:2009-02 is not listed on IDEAS
- Maurizio Ciaschini, Rosita Pretaroli, Francesca Severini, Claudio Socci, 2010. "Environmental tax reform and double dividend evidence," Working Papers 25-2010, Macerata University, Department of Studies on Economic Development (DiSSE), revised May 2010.
- Andreas Peichl, 2009.
"The benefits and problems of linking micro and macromodels - Evidence from a flat tax analysis,"
Journal of Applied Economics,
Universidad del CEMA, vol. 0, pages 301-329, November.
- Andreas Peichl, 2009. "The Benefits and Problems of Linking Micro and Macro Models: Evidence from a Flat Tax Analysis," SOEPpapers on Multidisciplinary Panel Data Research 182, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Alho, Kari O. E., 2006. "Labour Market Institutions and the Effectiveness of Tax and Benefit Policies in Enchancing Employment: A General Equilibrium Analysis," Discussion Papers 1008, The Research Institute of the Finnish Economy.
- Michael Pflüger & Jens Südekum, 2005. "Die Neue Ökonomische Geographie und Effizienzgründe für Regionalpolitik," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 74(1), pages 26-46.
- Schubert, Stefanie & Schnabel, Reinhold, 2009. "Curing Germany's health care system by mandatory health premia?," Journal of Health Economics, Elsevier, vol. 28(5), pages 911-923, September.
- Institute for Fiscal Studies, 2011. "A retrospective evaluation of elements of the EU VAT system," Taxation Studies 0039, Directorate General Taxation and Customs Union, European Commission.
- Christoph Böhringer & Andreas Löschel, 2004. "Die Messung nachhaltiger Entwicklung mithilfe numerischer Gleichgewichtsmodelle," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 73(1), pages 31-52.
- Gustavo Hernández, 2012. "Payroll Taxes and the Labor Market: A Computable General Equilibrium Analysis," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(1), pages 99-123, May.
- Krebs, Tom & Scheffel, Martin, 2010. "A macroeconomic model for the evaluation of labor market reforms," ZEW Discussion Papers 10-050, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:22:y:2005:i:1:p:81-108For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

