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Tax Coordination and Unemployment Author info | Abstract | Publisher info | Download info | Related research | Statistics Clemens Fuest
Bernd Huber
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This paper analyses the implications of unemployment for fiscal competition and tax coordination among small open economies. Unemployment is modeled as resulting from wage bargaining. The analysis focuses on the effect of labour and capital tax coordination on welfare. We show that, while coordinated capital and labour tax increases unambiguously raise welfare if labour markets are competitive, different results emerge if labour markets are unionised. It turns out that coordinated capital and labour tax increases may reduce welfare. Copyright Kluwer Academic Publishers 1999
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Article provided by Springer in its journal International Tax and Public Finance .
Volume (Year): 6 (1999)
Issue (Month): 1 (February)
Pages: 7-26
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Handle: RePEc:kap:itaxpf:v:6:y:1999:i:1:p:7-26Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=102915
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Keywords: tax competition ; tax coordination ; unemployment ; wage bargaining ; capital mobility ; Other versions of this item:
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