Distortive Wage Tax and Commuting Subsidies
University of Erlangen-Nuremberg - Institute of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Within an urban economics framework, this paper studies the implications of a wage tax which distorts workplace choices on account of commuting costs. Commuting subsidies increase welfare if and only if they shift labor supply from less to more productive business districts.
Number of Pages in PDF File: 9
Keywords: Wage tax, commuting subsidies
JEL Classification: R13, H21working papers series
Date posted: February 21, 2006
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