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public social expenditures and a high unemployment rate are associated with a small positive (or no) immediate impact on …
Persistent link: https://www.econbiz.de/10003850182
It is often argued that tax competition may lead to a 'race to the bottom'. This result may indeed hold in the case of factor mobility (such as capital). However, in this paper we emphasize the unique feature of labor migration, that may nullify the 'race to the bottom' hypothesis. Labor...
Persistent link: https://www.econbiz.de/10003974528
In this paper I provide some support to the Tiebout hypothesis. It suggests that when a group of host countries faces an upward supply of immigrants, tax competition does not indeed lead to a race to the bottom; competition may lead to higher taxes than coordination. We identify a fiscal...
Persistent link: https://www.econbiz.de/10009742860
challenges the two basic functions of the welfare state, redistribution and social insurance when private unemployment insurance … markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk of unskilled workers; (ii … welfare optimal redistribution and unemployment insurance policies. -- Outsourcing ; unemployment ; social insurance …
Persistent link: https://www.econbiz.de/10003790635
unemployment. Four main results are derived: (i) the optimal size of the welfare state depends on the degree of risk-aversion and … the unemployment rate as a measure of labor income risk. The unemployment rate partly reflects the country's exposure to … globalization; (ii) corporate taxation and social insurance have equivalent effects on unemployment and outbound FDI; (iii) while an …
Persistent link: https://www.econbiz.de/10003808645
Persistent link: https://www.econbiz.de/10003497526
how this framework can generate changes in unemployment and labor participation that match those uncovered by the ….S. states, including many that experience unemployment during the transition. However, nominal rigidities reduce the overall U …
Persistent link: https://www.econbiz.de/10013384886
How to explain rising income and wealth inequality? We build an original heterogeneous-agent model with three key features: (i) an explicit link between firm's market power and top income shares, (ii) a granular representation of the tax and transfer system, and (iii) three assets with...
Persistent link: https://www.econbiz.de/10013384710
Due to markup distortions, in international trade models with monopolistic competition and heterogeneous firms the market equilibrium is inefficient unless demand exhibits constant elasticity of substitution. When it does not, global welfare maximization generally requires policy intervention...
Persistent link: https://www.econbiz.de/10014515012
In this paper, unlike the conventional wisdom, we demonstrate that the relationship between the size of the market and number of firms would be non-monotonic. While moderate rise in the size would force the local firms to exit and only the foreign firm rules, substantial rise in the size would...
Persistent link: https://www.econbiz.de/10013365373