2006 Fiscal Year Final Research Report Summary
Application of the theory of public finance policies in the presence of international unemployment and environmental problems.
| Project/Area Number |
17530234
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | Otaru University of Commerce |
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Principal Investigator |
SUMINO Ko Otaru University of Commerce, Faculty of Commerce, Professor, 商学部, 教授 (20226608)
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| Project Period (FY) |
2005 – 2006
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| Keywords | unemployment / unemployment benefits / environmental problems / public policies / polluting taxes / Pigovian tax / additivity property |
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| Research Abstract |
We have taken part in the discussion regarding the effects of unemployment benefits. It has shown that unemployment benefits may well decrease unemployment as long as these are indexed by the competitive wage and are financed by the corporate income tax, via using the balanced budget incidence analysis.
When we consider whether Keynesian ideas work in India, our considerations take us back to its applicability and are of some intuitive appeal from the real world point of view. Hence, we have a strong argument of counter-intuitive effects of unemployment benefits.
We reexamined the optimal tax problems in the presence of externalities. Efficiency restrain levels of polluting taxes generate revenues so that we can reduce rates on consumption commodities that distort the functioning of the economy. So these polluting taxes can reduce excessive levels of pollution and also these revenues can use unemployment benefits. These public policies can decrease unemployment labors.
Moreover, we showed that the Sandmo's "additivity property" where externalities only affect the tax formula for an externality generating good and do not affect other tax formulas.
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Research Products
(3 results)
