According to the existing literature, capital taxes should not be imposed in the presence of optimal profit taxation in either unionised or competitive labour markets. We show that this conclusion does not hold for an economy with both competitive and unionised sectors, where the competitive...

According to the existing literature, capital taxes should not be imposed in the presence of optimal profit taxation in either unionised or competititive labour markets. We show that this conclusion does not hold for an economy with both competitive and unionised sectors, where the competitive...

High employment protection in the public sector results in strategic over-employment if government divisions compete for budgets in a dynamic setting. Bureaucrats who are interested in maximising their divisions' output employ excess labor, since this induces the sponsor to provide complementary...

Abstract: Die wirtschaftliche Globalisierung und die Alterung der Bevölkerung stellen die öffentlichen Haushalte wie auch die Systeme der sozialen Sicherung vor enorme Herausforderungen. Vor diesem Hintergrund unternehmen die Autoren der vorliegenden Festschrift, die unterschiedlichen...