Riedl, Arno; van Winden, Frans - In: European Economic Review 56 (2012) 2, pp. 216-232
tax systems: a wage tax system and a sales-tax-cum-labor-subsidy system. The two systems are applied to the small country …, while the wage tax system always obtains in the large country. The main result is that the sales tax system outperforms the … wage tax system, using standard economic indicators. Moreover, it turns out that under the sales tax system economic …