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Measurement Of The Foreign Exchange And Sales Tax Externality On The Value Added Of Labour


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  • Glenn Jenkins

    (Queen's University, Kingston, On, Canada)



The purpose of this note is to measure the externality created by the existence of sales taxes and trade distortions when labour is taken away from the rest of the economy for use in the project under examination. This externality is calculated as a proportion of the value added of labour estimated by the gross-of-income-tax wage component of the social opportunity cost of labour. This estimation is made by employing the same general equilibrium model and data base as used to calculate the shadow price of the foreign exchange for Canada.

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Bibliographic Info

Paper provided by JDI Executive Programs in its series Development Discussion Papers with number 1977-02.

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Length: 28 pages
Date of creation: Sep 1977
Date of revision:
Handle: RePEc:qed:dpaper:200

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Keywords: foreign exchange; sales and externality; labor;

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Cited by:
  1. Chun-Yan Kuo, 1997. "Evaluating the Social Cost of Job Creation," Development Discussion Papers, JDI Executive Programs 1991-12, JDI Executive Programs.


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