Quotation Kubin, Ingrid, Kreickemeier, Udo. 2008. Factor taxes in open economies with unemployment. Jahrestagung 2008 des Vereins für Socialpolitik Gesellschaft für Wirtschaft- und Sozialwissenschaften, Graz, Österreich, 23.09-26.09.


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Abstract

We analyze the effects of factor taxes in a standard 2x2x2 model of international trade with internationally immobile factors, modified to allow for involuntary unemployment. Factor taxes that increase employment are shown to be potentially welfare reducing in the open economy due to an induced negative terms of trade effect - a case that we label ”induced immiserising growth”. In this case, there exists the potential for welfare increasing international coordination of factor taxes

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Factor taxes in open economies with unemployment
Event Jahrestagung 2008 des Vereins für Socialpolitik Gesellschaft für Wirtschaft- und Sozialwissenschaften
Year 2008
Date 23.09-26.09
Country Austria
Location Graz

Associations

People
Kubin, Ingrid (Details)
External
Kreickemeier, Udo (University of Nottingham, United Kingdom)
Organization
Research Institute for International Taxation FI (Details)
Institute for International Economics and Development IN (Details)
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