Three Theorems on Inflation Taxes and Marginal Employment Subsidies

Andrew Oswald

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: The paper studies the micro-economics of inflation taxes and marginal employment subsidies. It proves under very weak assumptions (i) an inflation tax will reduce the long-run equilibrium wage or price and (ii) that a marginal employment subsidy will raise the long-run equilibrium employment level. The theorems are illustrated with examples. The paper also proves (iii) that in special circumstances a tax on inflation is exactly equilivalent to a marginal employment subsidy.

Pages: 22 pages
Date: 1982
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https://warwick.ac.uk/fac/soc/economics/research/w ... 78-1988/twerp220.pdf

Related works:
Journal Article: Three Theorems on Inflation Taxes and Marginal Employment Subsidies (1984)
Working Paper: Three Theorems on Inflation Taxes and Marginal Employment Subsidies (1983)
Working Paper: Three Theorems on Inflation Taxes and Marginal Employment Subsidies (1982)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:220

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