Resource title

Fiscal policy, economic integration and unemployment

Resource image

image for OpenScout resource :: Fiscal policy, economic integration and unemployment

Resource description

In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We allow for capital and firm mobility in a model where the government chooses the level of wage, source-based capital and profit taxation. The taxing choices of governments are analyzed in scenarios which differ with respect to the constraints imposed on the set of available taxes and on the mobility of firms. As a general result, the welfare loss from labour market imperfections increases when tax bases become internationally mobile, which suggests an increasing relevance of domestic labour-market reforms when tax bases become global.

Resource author

Wolfgang Eggert, Laszlo Goerke

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20174

Resource license

Adapt according to the presented license agreement and reference the original author.