Labor Markets and Capital Tax Competition

Thomas Eichner and Thorsten Upmann

No 3099, CESifo Working Paper Series from CESifo

Abstract: Ogawa et al. (2006) analyze capital tax competition in a fixed-wage approach and show that the original results of Zodrow and Mieszkowski (1986) are not preserved in the presence of unemployment. In the present paper we challenge this view and investigate capital tax competition for some arbitrary institutional setting of the labor market. We find that if the labor market is characterized by some efficient bargaining solution, the results of Zodrow and Mieszkowski (1986) are preserved.

Keywords: capital tax competition; unemployment; efficient bargains (search for similar items in EconPapers)
JEL-codes: H21 J51 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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