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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- Aronsson, Thomas & Wehke, Sven, 2006.
"Public Goods, Unemployment and Policy Coordination,"
Umeå Economic Studies
700, Umeå University, Department of Economics.
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- repec:ner:tilbur:urn:nbn:nl:ui:12-73563 is not listed on IDEAS
- 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.
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"Optimal taxation, public goods and environmental policy with involuntary unemployment,"
1993-77, Tilburg University, Center for Economic Research.
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- 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, Tilburg University, School of Economics and Management.
- Thomas Aronsson & Erkki Koskela, 2008. "Optimal Redistributive Taxation and Provision of Public Input Goods in an Economy with Outsourcing and Unemployment," CESifo Working Paper Series 2481, CESifo Group Munich.
- Wilson, John Douglas, 1991. "Optimal Public Good Provision with Limited Lump-Sum Taxation," American Economic Review, American Economic Association, vol. 81(1), pages 153-66, March.
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