Within a two-country model with involuntary unemployment, this paper investigates corporate income taxation under … tax policy causes a fiscal externality which goes back to unemployment. This unemployment externality is lowest when the … improves welfare and reduces unemployment. The welfare increase is strongest under a pure sales formula …

Zodrow and Mieszkowski (1986) are not preserved in the presence of unemployment. In the present paper we challenge this view …

involuntary unemployment and by allowing for labour taxation as a second source of public funds. For a large class of production …

Zodrow and Mieszkowski (1986) are not preserved in the presence of unemployment. In the present paper we challenge this view …

Within a two-country model with involuntary unemployment, this paper investigates corporate income taxation under … tax policy causes a fiscal externality which goes back to unemployment. This unemployment externality is the lowest when … apportionment improves welfare and reduces unemployment. The welfare increase is the strongest under a pure sales formula. …