Suchergebnisse

Government interventions create vicious cycles of collateral damage, larger bureaucracies, and further interventions. As one example, high taxes on cigarettes have been causing damage for years, yet governments keep jacking the tax rates up further.

Lower taxes create opportunities that draw even those not consciously considering tax rates.

AbstractWorktime has been falling slowly though real wages have risen dramatically. We show that in a general equilibrium model with CES utility and production functions, worktime falls with real wages if and only if the elasticity of substitution between consumption and leisure is less than that between capital and labour, but always rises with labour's income share and concerns with relative income. While a falling labour share may not reduce worktime due to market inflexibility, stronger income comparison increases inefficient overwork. Hence, more flexibility, higher income taxes and a basic income are needed to reduce working hours and raise social welfare.