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Capital mobility, imperfect labour markets, and the provision of public goods

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  • Pauser, Johannes

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"This paper examines equilibrium tax rates and provision levels of public goods in an international tax competition setting with imperfect labour markets. While earlier research mainly reexamined the result of underprovision of public consumption goods in the decentralised equilibrium, this paper focuses also on the provision of public intermediate goods with different sets of policy instruments available for governments, including a labour tax. In the tax game assuming symmetric jurisdictions, public inputs may also be overprovided if unemployment is caused by a fixed wage above the competitive wage rate. In detail, overprovision of public inputs may occur if governments have a head tax only, or head and capital taxes at disposal. Using comparative static analysis, the paper investigates further the sources of the differences between governmental provision of public consumption goods and public inputs." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Pauser, Johannes, 2013. "Capital mobility, imperfect labour markets, and the provision of public goods," IAB-Discussion Paper 201309, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201309
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christian Hutter & Enzo Weber, 2015. "Constructing a new leading indicator for unemployment from a survey among German employment agencies," Applied Economics, Taylor & Francis Journals, vol. 47(33), pages 3540-3558, July.
    2. Holger Gillet & Johannes Pauser, 2018. "Public Input Provision in Asymmetric Regions with Labor Market Imperfections," German Economic Review, Verein für Socialpolitik, vol. 19(4), pages 466-492, November.
    3. Schwengler, Barbara, 2013. "Einfluss der europäischen Regionalpolitik auf die deutsche Regionalförderung," IAB-Discussion Paper 201318, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Werner, Daniel, 2013. "New insights into the development of regional unemployment disparities," IAB-Discussion Paper 201311, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Drechsler, Jörg & Kiesl, Hans, 2014. "Beat the heap - an imputation strategy for valid inferences from rounded income data," IAB-Discussion Paper 201402, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Gillet, Holger & Pauser, Johannes, 2014. "Efficiency in public input provision in two asymmetric jurisdictions with imperfect labour markets," IAB-Discussion Paper 201411, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Bauer, Angela & Kruppe, Thomas, 2013. "Policy Styles : zur Genese des Politikstilkonzepts und dessen Einbindung in Evaluationsstudien," IAB-Discussion Paper 201322, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Bossler, Mario, 2013. "Recruiting abroad: the role of foreign affinity and labour market scarcity," IAB-Discussion Paper 201319, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Weber, Enzo & Zika, Gerd, 2013. "Labour market forecasting : is disaggregation useful?," IAB-Discussion Paper 201314, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Auslandsinvestitionen ; Beschäftigungseffekte ; Besteuerung ; Einkommensteuer ; Gebietskörperschaften ; internationaler Wettbewerb ; Kapitalmobilität ; Lohnhöhe ; Lohnsteuer ; Marktunvollkommenheit ; öffentliches Gut ; Steuerbelastung ; Steuerpolitik ; Arbeitslosigkeit ; Arbeitsmarkt;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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