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Optimal Taxation, Global Externalities and Labor Mobility

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  • Aronsson, T.
  • Blomquist, S.

Abstract

This paper addresses transboundary environmental problems in the context of an optimal tax problem, when part of the labor force is mobile across countries. The policy instruments include both commodity taxation and nonlinear income taxation. We show how the tax policy in a noncooperative equilibrium differs from that corresponding to a cooperative equilibrium. The results also indicate how a 'global policy maker' must act in order to make the national policy makers replicate the cooperative equilibrium.

Suggested Citation

  • Aronsson, T. & Blomquist, S., 2000. "Optimal Taxation, Global Externalities and Labor Mobility," Papers 2000-15, Uppsala - Working Paper Series.
  • Handle: RePEc:fth:uppaal:2000-15
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    References listed on IDEAS

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    1. Bovenberg, A. L. & van der Ploeg, F., 1994. "Environmental policy, public finance and the labour market in a second-best world," Journal of Public Economics, Elsevier, vol. 55(3), pages 349-390, November.
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    13. Thomas Aronsson, 1999. "On Cost Benefit Rules for Green Taxes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(1), pages 31-43, January.
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    Citations

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    Cited by:

    1. Aronsson, Thomas & Sjögren, Tomas, 2005. "Externalities, Border Trade and Illegal Production: An Optimal Tax Approach to Alcohol Policy," Umeå Economic Studies 654, Umeå University, Department of Economics.
    2. Kenneth Backlund & Tomas Sjögren & Jesper Stage, 2014. "Optimal tax and expenditure policy in the presence of emigration: Are credit restrictions important?," Indian Growth and Development Review, Emerald Group Publishing, vol. 7(2), pages 98-117, November.
    3. Lars Persson, 2015. "Incentives underlying tax policies in a decentralized federation with horizontal leadership and transboundary environmental damage," Letters in Spatial and Resource Sciences, Springer, vol. 8(1), pages 77-88, March.
    4. Květa Kubátová, 2009. "Optimal Taxation - Review of Theory," Český finanční a účetní časopis, University of Economics, Prague, vol. 2009(3), pages 24-36.
    5. Aronsson, Thomas & Johansson-Stenman, Olof, 2015. "Keeping up with the Joneses, the Smiths and the Tanakas: On international tax coordination and social comparisons," Journal of Public Economics, Elsevier, vol. 131(C), pages 71-86.
    6. Linda Sahlén & Thomas Aronsson & Kenneth Backlund, 2006. "Technology Transfers and the Clean Development Mechanism in a North-South General Equilibrium Model," Working Papers 2006.145, Fondazione Eni Enrico Mattei.
    7. Aronsson, Thomas & Sjögren, Tomas, 2017. "Optimal Taxation, Redistribution, and Environmental Externalities," Umeå Economic Studies 950, Umeå University, Department of Economics.
    8. Juan Carlos Bárcena-Ruiz & María Begona Garzón, 2009. "Environmental Taxes and Wage Setting Structure," Prague Economic Papers, University of Economics, Prague, vol. 2009(4), pages 353-365.
    9. Pavel Ciaian, 2007. "Land Reform and Productivity Gains with Multiple Market Imperfections," EERI Research Paper Series EERI_RP_2007_01, Economics and Econometrics Research Institute (EERI), Brussels.
    10. Thomas Aronsson Aronsson & Thomas Jonsson & Tomas Sjögren, 2006. "Environmental Policy and Optimal Taxation in a Decentralized Economic Federation," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(3), pages 437-454, September.
    11. Aronsson, Thomas & Backlund, Kenneth & Sahlén, Linda, 2010. "Technology transfers and the clean development mechanism in a North-South general equilibrium model," Resource and Energy Economics, Elsevier, vol. 32(3), pages 292-309, August.
    12. Aronsson, Thomas & Johansson-Stenman, Olof, 2008. "When the Joneses' consumption hurts: Optimal public good provision and nonlinear income taxation," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 986-997, June.
    13. Aronsson, Thomas, 2007. "When the Joneses’ Consumption Hurts: Optimal Income Taxation and Public Good Provision in an OLG Model," Umeå Economic Studies 711, Umeå University, Department of Economics.
    14. Kaisa Kotakorpi, 2009. "Paternalism and Tax Competition," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(1), pages 125-149, March.
    15. Aronsson, Thomas & Persson, Lars & Sjögren, Tomas, 2005. "Environmental Policy and Product Specialization," Umeå Economic Studies 653, Umeå University, Department of Economics.

    More about this item

    Keywords

    TAXATION ; LABOUR ; INCOME;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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