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Tax Arbitrage and Labor Supply

Author

Listed:
  • Agell, Jonas

    (Department of Economics, Uppsala University)

  • Persson, Mats

    (Institute for International Economic Studies, Stockholm University)

Abstract
We examine how tax avoidance in the form of trade in well-functioning asset markets affect the basic labor supply model. We show that tax arbitrage has potentially dramatic implications for positive, normative and econometric analysis of how taxes affect work incentives.

Suggested Citation

  • Agell, Jonas & Persson, Mats, 1998. "Tax Arbitrage and Labor Supply," Seminar Papers 647, Stockholm University, Institute for International Economic Studies.
    • Handle: RePEc:hhs:iiessp:0647
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    labor suppy; progressive income taxation; tax arbitrage;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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