Employment Subsidy with Capital Mobility
Maurice Marchand () and
Pierre Pestieau ()
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Maurice Marchand: CORE and IAG, UniversitÈ catholique de Louvain
Journal of Public Economic Theory, 2003, vol. 5, issue 2, 327-344
Most models of tax competition assume full employment. Yet, actually one often observes that fiscal competition, particularly when it is aimed at attracting investment, is motivated by the concern of fighting unemployment and enhancing job creation. The present paper considers a multicountry model with capital mobility and unemployment. Fiscal policy has two opposing objectives: financing unemployment insurance and increasing employment. In each country there is a majority vote on this policy. Copyright 2003 Blackwell Publishing Inc..
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Working Paper: Employment subsidy with capital mobility (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jpbect:v:5:y:2003:i:2:p:327-344
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