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Dynamic curvature of the tax wedge

Author

Listed:
  • Thomas Cool

    (independent consultant)

Abstract

The tax wedge makes for a higher gross minimum wage, and a wedge comes about more likely when tax exemption is adjusted for inflation only. Due to curvature, the wedge comes closer to its limit value for already low levels of productivity growth. Thus, the negative effects of the wedge occur primarily at the onset of economic growth. They are less noticeable when stagnation has altready set in.

Suggested Citation

  • Thomas Cool, 1996. "Dynamic curvature of the tax wedge," Public Economics 9604001, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwppe:9604001
    Note: 7 pages Word
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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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