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

Johannes Pauser ()

No 201309, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, 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))

Keywords: Auslandsinvestitionen; Beschäftigungseffekte; Besteuerung; Einkommensteuer; Gebietskörperschaften; internationaler Wettbewerb; Kapitalmobilität; Lohnhöhe; Lohnsteuer; Marktunvollkommenheit; öffentliches Gut; Steuerbelastung; Steuerpolitik; Arbeitslosigkeit; Arbeitsmarkt (search for similar items in EconPapers)
JEL-codes: H21 H71 J51 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2013
New Economics Papers: this item is included in nep-acc and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201309

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