In the present paper we extend the classical tax-competition framework of Zodrow and Mieszkowski (1986) by modelling involuntary unemployment and by allowing for labour taxation as a second source of public funds. For a large class of production functions (including CES), it turns out that tax...

To finance unemployment insurance, states raise payroll tax rates on employers who engage in layoffs. Tax rates are, therefore, highest for firms after downturns, potentially hampering labor-market recovery. Using full-population, administrative records from Florida, I estimate the effect of...

Within a two-country model with involuntary unemployment, this paper investigatescorporate income taxation under separate accounting versus formula apportionment. Incontrast to separate accounting, under formula apportionment the corporate tax policy causesa fiscal externality which goes back to...

"This paper examines equilibrium tax rates and provision levels of public goods in an international tax competition setting with imperfect labour markets. While earlier research mainly reexamined the result of underprovision of public consumption goods in the decentralised equilibrium, this...

This paper is an investigation of the determinants of prohibition on alcohol sales by local municipalities. It is hypothesized that both socioeconomic and interest group variables together will have greater explanatory value in explaining outcomes rather than analysis relying on either voting or...

In the present paper it will be pointed out empirically that R&D could be a way to reduce government debt (as % of GDP) and unemployment rate. Consumption should not be reduced. Panel data are elaborated by the Eviews software package