Can Labor Market Imperfections Cause Overprovision of Public Inputs?
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.
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Umeå Economic Studies
700, Umeå University, Department of Economics.
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- Ming Chang, 2000. "Rules and Levels in the Provision of Public Goods: The Role of Complementarities between the public Good and Taxed Commodities," International Tax and Public Finance, Springer, vol. 7(1), pages 83-91, February.
- repec:ner:tilbur:urn:nbn:nl:ui:12-73563 is not listed on IDEAS
- Bovenberg, A.L. & van der Ploeg, F., 1996.
"Optimal taxation, public goods and environmental policy with involuntary unemployment,"
Other publications TiSEM
2a1a87d9-2ed9-41a7-b3aa-b, School of Economics and Management.
- 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.
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