A Note on the General Equilibrium Effects of Taxes on Labor Supply in Sweden
探讨了税收对劳动供给的局部均衡效应在一般均衡条件下是否成立，并提供了支持收入效应被税收再分配抵消的实证证据。
I. It has been argued by Lindbeck that the partial equilibrium effects of increased taxes on the supply of labor will consist primarily of substitution effects, including cross-substitution effects of subsidization or public provision of goods.' Assume that households perceive increased tax payments as largely redistributed to the household sector. Then the perceived and/or actual transfer payments tend to neutralize the positive income effects on the supply of labor which follows from a rise in the tax rate. If so, there remains mainly an unambiguously negative substitution effect due to the lowered price of leisure as a consequence of the increased tax rate. The conclusion that follows from this theoretical argument, however, is not necessarily that the general equilibrium effect on the supply of labor is determined unambiguously. A change in the tax rate affects not only the labor market, but in general all markets and therefore all prices. The purpose of this note is to present conditions under which the abovementioned partial equilibrium result holds in a general equilibrium setting. We also introduce some empirical evidence which to some degree supports the assumption that income effects are to a large extent netted out by the redistribution of tax revenues.