Can Labor Market Imperfections Cause Overprovision of Public Inputs?
Abstract
In a model where trade unions dominate the labor market, a relationship is derived between the rate of unemployment and the provision of a public input in the production. This relationship implies that for conventional rates of unemployment, the public input will be overprovided compared to the first-best level.Download Info
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Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 09.13.Length: 8 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:pab:wpaper:09.13
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Keywords: Public Inputs; Trade Unions.;Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-27 (All new papers)
- NEP-LAB-2009-11-27 (Labour Economics)
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.:
- Wilson, John Douglas, 1991. "Optimal Public Good Provision with Limited Lump-Sum Taxation," American Economic Review, American Economic Association, vol. 81(1), pages 153-66, March.
- Aronsson, Thomas & Wehke, Sven, 2008.
"Public goods, unemployment and policy coordination,"
Regional Science and Urban Economics,
Elsevier, vol. 38(3), pages 285-298, May.
- Aronsson, Thomas & Wehke, Sven, 2006. "Public Goods, Unemployment and Policy Coordination," UmeÃ¥ Economic Studies 700, Umeå University, Department of Economics.
- Bovenberg, A.L. & Ploeg, F. van der, 1996.
"Optimal taxation, public goods and environmental policy with involuntary unemployment,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-73563, Tilburg University.
- Bovenberg, A. Lans & van der Ploeg, Frederick, 1996. "Optimal taxation, public goods and environmental policy with involuntary unemployment," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 59-83, October.
- Bovenberg, A.L. & Ploeg, F. van der, 1993. "Optimal taxation, public goods and environmental policy with involuntary unemployment," Discussion Paper 1993-77, Tilburg University, Center for Economic Research.
- Thomas Aronsson & Erkki Koskela, 2008. "Optimal Redistributive Taxation and Provision of Public Input Goods in an Economy with Outsourcing and Unemployment," CESifo Working Paper Series 2481, CESifo Group Munich.
- Diego Martinez Lopez & A. Jesus Sanchez Fuentes, 2006. "On the optimal level of public inputs," Working Papers 06.34, Universidad Pablo de Olavide, Department of Economics, revised Mar 2008.
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