An experimental investigation of wage taxation and unemployment in closed and open economies

European Economic Review

Volumn 51, Issue 4, 2007, Pages 871-900

  Riedl, Arno ^a,b,c   van Winden, Frans ^c,d,e  

^a MAASTRICHT UNIVERSITY   (Netherlands)

^b IZA   (Germany)

^c CESIFO   (Germany)

^d TINBERGEN INSTITUTE   (Netherlands)

^e CEPR   (United Kingdom)

Author keywords

Experiments; International economics; Unemployment; Wage taxation

Indexed keywords

ECONOMIC IMPACT; ECONOMIC THEORY; EMPLOYMENT; EXPERIMENTAL STUDY; LABOR; TAX SYSTEM; THEORETICAL STUDY; UNEMPLOYMENT; WAGE;

EID: 34247102188     PISSN: 00142921     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.euroecorev.2006.05.003     Document Type: Article

References (52)

1. Adam, K., 2005. Experimental evidence on the persistence of output and inflation. CEPR Discussion paper No. 4885.
2. Akerlof G.A. Behavioral macroeconomics and macroeconomic behaviour. American Economic Review 92 (2002) 411-433
3. Aizenman J., and Marion N.P. Macroeconomic uncertainty and private investment. Economics Letters 41 (1993) 207-210
4. Anderson P.M., and Meyer B.D. The effects of the unemployment insurance payroll tax on wages, employment, claims and denials. Journal of Public Economics 78 (2000) 81-106
5. Ball S., Eckel C., Grossman P.J., and Zame W. Status in markets. Quarterly Journal of Economics 116 (2001) 161-188
6. Batra R.N., and Ullah A. Competitive firm and the theory of input demand under price uncertainty. Journal of Political Economy 82 (1974) 537-548
7. Bosch-Domènech A., and Silvestre J. Credit constraints in general equilibrium: Experimental results. The Economic Journal 107 (1997) 1445-1464
8. Brockhaus Sr. R.H., 1982. The psychology of the entrepreneur. In: Kent, C.A., Sexton, D.L., Vesper, K.H. (Eds.), Encyclopaedia of Entrepreneurship. Prentice-Hall, Englewood Cliffs.
9. Brunetti A., and Weder B. Investment and institutional uncertainty: A comparative study of different uncertainty measures. Weltwirtschaftliches Archiv 134 (1998) 513-533
10. Daveri F., and Tabellini G. Unemployment, growth and taxation in industrial countries. Economic Policy 15 (2000) 49-104
11. Davis D.D., and Holt Ch.A. Experimental Economics (1993), Princeton University Press, Princeton
12. Davis J.S., and Swenson Ch.W. Experimental evidence on tax incentives and the demand for capital investments. The Accounting Review 68 (1993) 482-514
13. Economic Policy: A European Forum, 1997. vol. 25.
14. Elmeskov, J., Martin, J.P., Scarpetta, S. (1998). Key lessons from labour market reforms: Evidence from OECD countries experiences, mimeo. Swedish Economic Policy Review 5, 205-252.
15. European Commission, 1994. Growth, competitiveness, employment: The challenges and ways forward into the 21st Century. White Paper, Office for Official Publications of the European Community, Luxembourg.
16. Ghosal V. Input choices under price uncertainty. Economic-Inquiry 33 (1995) 142-158
17. Goeree J.K., and Holt Ch.A. Employment and prices in a simple macroeconomy. Southern Economic Journal 65 (1999) 637-647
18. Gruber J. The incidence of payroll taxation: Evidence from Chile. Journal of Labor Economics 15 (1997) S72-S101
19. Gunjal K., and Legault B. Risk preferences of dairy and hog producers in Quebec. Canadian Journal of Agricultural-Economics 43 (1995) 23-35
20. Hartman R. Competitive firm and the theory of input demand under price uncertainty: Comment. Journal of Political Economy 83 (1975) 1289-1290
21. Hartman R. Factor demand with output price uncertainty. American Economic Review 66 (1976) 675-681
22. Hey J.D., and di Cagno D. Sequential markets: An experimental investigation of Clower's dual-decision hypothesis. Experimental Economics 1 (1998) 63-85
23. Holthausen D.M. Input choices and uncertain demand. American Economic Review 66 (1976) 94-103
24. Kahneman D., and Tversky A. Prospect theory: An analysis of decision under risk. Econometrica 47 (1979) 263-291
25. Layard R., Nickel S., and Jackman R. Unemployment: Macroeconomic Performance and the Labour Market (1991), Oxford University Press, Oxford
26. Lian P., and Plott Ch.R. General equilibrium, markets, macroeconomics and money in a laboratory experimental environment. Economic Theory 12 (1998) 21-75
27. Myagkov M., and Plott Ch.R. Exchange economies and loss exposure: Experiments exploring prospect theory and competitive equilibria in market environments. American Economic Review 87 (1997) 801-828
28. Nickell, S., Layard, R., 1997. The labor market consequences of technical and structural change. Center for Economic Performance, Discussion Paper No. 23. Labor market institutions and economic performance, University of Oxford, Oxford.
29. Nickell, S., Layard, R., 1999. Labor market institutions and economic performance. In: Ashenfelder, O., Card, D. (Eds.), Handbook of Labor Economics. Elsevier, Amsterdam.
30. Nickell S., Nunziata L., and Ochel W. Unemployment in the OECD since the 1960s. What do we know?. The Economic Journal 115 (2005) 1-27
31. Normann, H.-T., Riccuiti, R., 2004. Experiments for economic policy making. ENCORE opinion paper, University of Amsterdam.
32. Noussair Ch.N., Plott Ch.R., and Riezman R.G. An experimental investigation of the patterns of international trade. American Economic Review 85 (1995) 462-491
33. Noussair Ch.N., Plott Ch.R., and Riezman R.G. The principles of exchange rate determination in an international finance experiment. Journal of Political Economy 105 (1997) 822-861
34. Noussair, Ch.N., Plott, Ch.R., Riezman, R.G., 2003. Production, Trade, and Exchange Rates in Large Experimental Economies, Emory University, mimeo.
35. OECD, 1999. Employment outlook, OECD, Paris.
36. Oswald, A.J., 1997. The missing piece of the unemployment puzzle. Inaugural lecture, University of Warwick.
37. Pissarides C.A. The impact of employment tax cuts on unemployment and wages: The role of unemployment benefits and tax structure. European Economic Review 42 (1998) 155-183
38. Plott Ch.R., and Gray P. The multiple unit double auction. Journal of Economic Behavior and Organization 13 (1990) 245-258
39. van Praag, B.M.S., Halberstadt, V., 1980. Towards an economic theory of non-employability a first approach. In: Roskamp, K.W. (Ed.), Public Choice and Public Finance. Edition Cujas, Paris, pp. 211-222.
40. Quirmbach H.C., Swenson Ch.W., and Vines C.C. An experimental examination of general equilibrium tax incidence. Journal of Public Economics 61 (1996) 337-358
41. Rochetau G. Can an unemployment insurance system generate multiple natural rates?. International Tax and Public Finance 6 (1999) 379-387
42. Rogerson R. Theory ahead of language in the economics of unemployment. Journal of Economic Perspectives 11 (1997) 73-92
43. Roth A.E. The economist as engineer: Game theory, experimentation, and computation as tools for design economics. Econometrica 70 (2002) 1341-1378
44. Saltari E., and Ticchi D. Risk-aversion and the investment-uncertainty relationship: A comment. Journal of Economic Behavior and Organization 56 (2005) 121-125
45. Schram A. Artificiality: The tension between internal and external validity in economic experiments. Journal of Economic Methodology 12 (2005) 225-237
46. Snower D.J. Converting unemployment benefits into employment subsidies. American Economic Review 84 (1994) 65-70
47. Snower D.J. Evolution of the welfare state. Schriften des Vereins für Socialpolitik 271 (2000) 35-52
48. Sørenson P.B. Public finance solutions to the European unemployment problem?. Economic Policy: A European Forum 25 (1997) 221-251
49. Stiglitz J.E. Taxation, public policy, and dynamics of unemployment. International Tax and Public Finance 6 (1999) 239-262
50. Tullio G. Long run implications of the increase in taxation and public debt for employment and economic growth in Europe. European Economic Review 31 (1987) 741-780
51. van Winden, F.A.A.M., Riedl, A., Wit, J. and van Dijk, F., 1999. Experimenteel onderzoek naar het plan van Elswijk: Eindrapport voor het Ministerie van Sociale Zaken en Werkgelegenheid. CREED, Universiteit van Amsterdam, Amsterdam.
52. Zhang G. Ownership concentration risk aversion and the effect of financial structure on investment decisions. European Economic Review 42 (1998) 1751-1778