Public finance solutions to the European unemployment problem?

Sørenson, Peter Birch

doi:10.1111/1468-0327.00021

Cited by 90 publications

(59 citation statements)

References 29 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The analysis in this paper may thus be seen as a theoretical underpinning of the numerical simulations reported in Frederiksen et al (1995), Sørensen (1997) and Piggott and Whalley (1998). Using more elaborate models of the interaction between the formal and the informal economy, these authors all find that consumer welfare can be improved by reducing the indirect tax rate on consumer services below the tax rate on other goods and services.…”

Section: Discussionmentioning

confidence: 77%

Optimal taxation with household production

Kleven¹,

Richter²,

Sørensen³

2000

Oxford Economic Papers

View full text Add to dashboard Cite

This paper suggests that the optimal tax system should favour market-produced services which are close substitutes for home-produced services. First, we modify the classical Corlett-Hague rule for optimal commodity taxation by showing that it may be optimal to impose a relatively low tax rate on consumer services even if such services are complements to leisure. Second, we find that when services and other goods are equally substitutable for leisure, so that uniform commodity taxation would be optimal in the absence of home production, the optimal tax structure will certainly involve a relatively low tax rate on consumer services. JEL classification: D13, H21

show abstract

Section: Discussionmentioning

confidence: 77%

Optimal taxation with household production

Kleven¹,

Richter²,

Sørensen³

2000

Oxford Economic Papers

View full text Add to dashboard Cite

show abstract

“…During the last decade, the effects of taxation on unemployment have been a major research topic in public finance (see Sørensen 1997 for an overview). The respective literature combines different theories of equilibrium unemployment with classical methods of tax incidence analysis.…”

Section: Introductionmentioning

confidence: 99%

Taxation and unemployment: an applied general equilibrium approach

2005

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We present an applied general equilibrium modelling approach to analyse employment and unemployment effects of labour tax cuts in an economy where wages are determined through firm-union bargaining at the sectoral level. In such a labour market regime, simulations for Germany show that labour tax policies can make only a small contribution to alleviating the problem of persistent unemployment. Terms of use: Documents inJEL classification: D58, E62, J60.Keywords: applied general equilibrium, wage bargaining, labour tax policy. We are grateful to a referee of the jounal of the CEER Mannheim for a number of clarifying suggestions. Christoph Boehringer

show abstract

“…This is in line with the analysis in this paper which suggests that certain consumer services that are close substitutes for untaxed household production should be left out of the indirect tax base, or at least be taxed at concessionary rates. Indeed, the numerical simulations undertaken by Sørensen (1997) and by Piggott and Whalley (1998) indicate that the efficiency gains from reduced tax rates on such services could be substantial.…”

Section: Discussionmentioning

confidence: 99%

The theory of optimal taxation: what is the policy relevance?

Sørensen

2007

Int Tax Public Finance

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: The paper discusses the implications of optimal tax theory for the debates on uniform commodity taxation and neutral capital income taxation. While strong administrative and political economy arguments in favor of uniform and neutral taxation remain, recent advances in optimal tax theory suggest that the information needed to implement the differentiated taxation prescribed by optimal tax theory may be easier to obtain than previously believed. The paper also points to the strong similarity between optimal commodity tax rules and the rules for optimal source-based capital income taxation. Terms of use: Documents in

show abstract

Public finance solutions to the European unemployment problem?

Cited by 90 publications

References 29 publications

Optimal taxation with household production

Optimal taxation with household production

Taxation and unemployment: an applied general equilibrium approach

The theory of optimal taxation: what is the policy relevance?

Contact Info

Product

Resources

About