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Preferences for Government Size and their Effect on Labor-Leisure Decisions

Author

Listed:
  • Jason Taylor

    (Central Michigan University)

  • Christopher Bailey

    (Central Michigan University)

Abstract

While many economists have theorized and/or empirically demonstrated that labor-leisure decisions are influenced by the rate of taxation, this note introduces a new mechanism in which the collecting of taxes on income may affect such decisions. Although standard models assume that agents have no preference for the size and scope of government activity, recent and past political rhetoric suggests that preferences do exist. We examine how labor-leisure decisions can be affected when taxes are derived from income and agents' utility functions include a preference for government size.

Suggested Citation

  • Jason Taylor & Christopher Bailey, 2005. "Preferences for Government Size and their Effect on Labor-Leisure Decisions," Economics Bulletin, AccessEcon, vol. 8(5), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-05h10001
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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