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Social Protection and Political Competition

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  • GABSZEWICZ, Jean J.

    ()
    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

  • VAN YPERSELE, Tanguy

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

Abstract

This paper analyses how the level of social protection is determined when its choice depends on political competition. First this is done under autarky. Then the analysis is extended to take account of the existence of an international capital market. We show that social protection never increases under international competition and, in several circumstances, drastically decreases.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1994057.

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Date of creation: 01 Oct 1994
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Handle: RePEc:cor:louvco:1994057

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References

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  1. Bucovetsky, Sam & Wilson, John Douglas, 1991. "Tax competition with two tax instruments," Regional Science and Urban Economics, Elsevier, vol. 21(3), pages 333-350, November.
  2. Wildasin, D.E., 1987. "Nash equilibria in models of fiscal competition," CORE Discussion Papers 1987020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Persson, Torsten & Tabellini, Guido, 1991. "The Politics of 1992: Fiscal Policy and European Integration," CEPR Discussion Papers 501, C.E.P.R. Discussion Papers.
  4. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
  5. Magee,Stephen P. & Brock,William A. & Young,Leslie, 1989. "Black Hole Tariffs and Endogenous Policy Theory," Cambridge Books, Cambridge University Press, number 9780521377003, April.
  6. Lejour, A. & Verbon, H., 1993. "Capital Mobility and Social Insurance in an Integrated Market," Papers 9379, Tilburg - Center for Economic Research.
  7. Mintz, J. & Tulkens, H., 1984. "Commodity tax competition between member states of a federation: equilibrium and efficiency," CORE Discussion Papers 1984027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
  9. Robert E. Baldwin, 1982. "The Political Economy of Protectionism," NBER Chapters, in: Import Competition and Response, pages 263-292 National Bureau of Economic Research, Inc.
  10. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-85, December.
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Citations

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Cited by:
  1. Tim Krieger, 2001. "Intergenerational Redistribution and Labor Mobility: A Survey," Departmental Discussion Papers 106, University of Goettingen, Department of Economics.
  2. Bucovetsky, S., 2003. "Efficient migration and redistribution," Journal of Public Economics, Elsevier, vol. 87(11), pages 2459-2474, October.
  3. Rizzo Leonzio, 2006. "Le inefficienze della competizione fiscale: una rassegna dei principali modelli teorici," Economia politica, Società editrice il Mulino, issue 1, pages 89-120.
  4. Eichner, Thomas & Runkel, Marco, 2009. "Corporate income taxation of multinationals and unemployment," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 610-620, September.
  5. Cremer, Helmuth & Pestieau, Pierre, 1996. "Distributive implications of European integration," European Economic Review, Elsevier, vol. 40(3-5), pages 747-757, April.
  6. Keisuke Kawata, 2013. "Capital market integration and optimal employment protection policies," IDEC DP2 Series 3-9, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
  7. Giampaolo Arachi & Massimo D'Antoni, 2004. "Redistribution as Social Insurance and Capital Market Integration," International Tax and Public Finance, Springer, vol. 11(4), pages 531-547, 08.
  8. Lee, Kangoh, 2002. "Factor Mobility and Income Redistribution in a Federation," Journal of Urban Economics, Elsevier, vol. 51(1), pages 77-100, January.
  9. Clemens Fuest & Bernd Huber, . "Tax Coordination and Unemployment," EPRU Working Paper Series 97-26, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  10. GABSZEWICZ, Jean J. & VAN YPERSELE , Tanguy, 1995. "The Voting Mechanism and Market Allocation : A Note," CORE Discussion Papers 1995017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Wagener, Andreas, 1999. "Double Bertrand tax competition: a fiscal game with governments acting as middlemen," ZEW Discussion Papers 99-52, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. Boccard, Nicolas & van Ypersele, Tanguy & Wunsch, Pierre, 2003. "Comparative advantage and social protection," European Journal of Political Economy, Elsevier, vol. 19(2), pages 247-264, June.
  13. Oliver Lorz & Frank Stähler, 2001. "Who is afraid of capital mobility? on taxation of labor income and the level of public services in an open economy," Journal of Economics, Springer, vol. 74(1), pages 79-101, February.
  14. Clemens Fuest & Bernd Huber & Jack Mintz, 2003. "Capital Mobility and Tax Competition: A Survey," CESifo Working Paper Series 956, CESifo Group Munich.
  15. Huizinga, Harry, 1999. "A two-region model of redistribution, migration and international trade," Journal of Public Economics, Elsevier, vol. 71(3), pages 335-354, March.
  16. Cremer, Helmuth & Pestieau, Pierre, 2002. "Factor Mobility and Redistribution: A Survey," IDEI Working Papers 154, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2003.

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