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Zoekopdracht: faculteit: "FEB" en publicatiejaar: "2001"

AuteursA.M. Riedl, F.A.A.M. van Winden
TitelDoes the wage tax system cause budget deficts? A macro-economic experiment
TijdschriftPublic Choice
Jaargang109
Jaar2001
Nummer3-4
Pagina's371-394
ISSN0048-5829
FaculteitFaculteit Economie en Bedrijfskunde
Instituut/afd.FEB: Research Institute in Economics and Econometrics Amsterdam (RESAM)
TrefwoordenPrice uncertainty; Competitive firm; Input demand
SamenvattingIn this paper we investigate experimentally the economic functioning of a wage tax system for financing unemployment benefits in an international economy, in particular in reaction to budget deficits and tax adjustment. Our results support the hypothesis that due to out-of-equilibrium price uncertainty producers are reluctant to employ inputs. We also observe a downward pressure on wages exacerbated by an over-supply of labor by consumers. These observations can explain the budget deficits found. Furthermore, we find that tax adjustments in order to facilitate a balancing of the budget has strong adverse effects on unemployment and real GDP.
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