Three Theorems on Inflation Taxes and Marginal Employment Subsidies

Andrew Oswald

No 269163, Economic Research Papers from University of Warwick - Department of Economics

Abstract: The paper studies the micro-economics of inflation taxes and marginal employment subsidies. It proves that 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 longrun equilibrium employment level. The theorems are illustrated with examples. The paper also prove's (iii) that in special circumstances a tax on inflation is exactly equivalent to a marginal employment subsidy.

Keywords: Financial Economics; Industrial Organization (search for similar items in EconPapers)
Pages: 26
Date: 1982-11-11
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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)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:269163

DOI: 10.22004/ag.econ.269163

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