The general equilibrium effects of social security contributions under alternative incidence assumptions
Authors: Maria Llop1; Antonio Manresa2
Source: Applied Economics Letters, Volume 11, Number 13, October 20, 2004 , pp. 847-850(4)
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Abstract:
This study deals with the economic effects of a firm's social security taxes in the Catalan economy, using an applied general equilibrium model. A novel aspect of the analysis is that it hypothesizes about the incidence of firm's contributions on both employers and employees. The results of a reduction in firm's social security taxation are sensitive to the incidence assumption. In particular, the study shows that the effects on regional unemployment, income distribution and relative prices of factors depend considerably on the incidence hypothesis assumed.Document Type: Research article
DOI: 10.1080/1350485042000258265
Affiliations: 1: Departament d'Economia Universitat Rovira i Virgili Avda. Universitat n° 1 43204 Reus Spain 2: Departament de Teoria Econòmica Universitat de Barcelona 08028 Barcelona Spain
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