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A note on capital income taxation with involuntary unemployment

Author

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  • Minoru Watanabe

    (Research Fellow, Graduate School of Economics, Kobe University/Hokusei Gakuen University)

Abstract

This study develops a standard overlapping generations model with imperfect labor markets. The results indicate that a higher capital income tax promotes not only economic growth but also employment if pension benefits exist.

Suggested Citation

  • Minoru Watanabe, 2021. "A note on capital income taxation with involuntary unemployment," Discussion Papers 2126, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2126
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2021/2126.pdf
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Masaya Yasuoka, 2021. "How should a government finance pension benefits?," Australian Economic Papers, Wiley Blackwell, vol. 60(1), pages 138-152, March.
    3. Francesco Daveri & Guido Tabellini, 2000. "Unemployment, growth and taxation in industrial countries," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(30), pages 48-104.
    4. Lars Kunze & Christiane Schuppert, 2010. "Financing social security by taxing capital income: A bad idea?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(3), pages 243-262, September.
    5. Wang, Leran, 2015. "Fertility and unemployment in a social security system," Economics Letters, Elsevier, vol. 133(C), pages 19-23.
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    7. Tetsuo Ono, 2010. "Growth and unemployment in an OLG economy with public pensions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 737-767, March.
    8. Uhlig, Harald & Yanagawa, Noriyuki, 1996. "Increasing the capital income tax may lead to faster growth," European Economic Review, Elsevier, vol. 40(8), pages 1521-1540, November.
    9. Corneo, Giacomo & Marquardt, Marko, 2000. "Public pensions, unemployment insurance, and growth," Journal of Public Economics, Elsevier, vol. 75(2), pages 293-311, February.
    Full references (including those not matched with items on IDEAS)

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