This paper investigates the employment effects of changes in the structure of taxation and in the tax progression. The contribution is to add endogenous determination of working hours into a union wage setting model. Thus employment effects of any changes in taxation are derived as a labour...

The study reconsiders the effects of tax progression in imperfectly competitive labour markets. Allowing for the individual supply of working hours, we show that the results derived in the standard model of decentralised wage bargaining do not hold if the wage setting is centralised or highly...

This paper provides new evidence about the evolution of top incomes in Finland over the period 1966 - 2002. Using micro data we construct estimates of shares of top income groups. The paper shows how the proportion of income earned by the very richest one per cent has changed over time. It shows...

In the paper an index number measuring inefficiency of taxation is introduced which is based on an economy-wide generalisation of the input distance function. Related concepts are an input based quantity index, the index of real endowment, and a productivity index indicating effectiveness of the...

The Finnish economy has experienced an incredible shock in the first part of the 1990s. The 12 per cent decline in Finland?s GDP between 1991 and 1993 led to a sharp rise in unemployment from 3.5 per cent in 1990 to 18 per cent in 1993. The credibility of the Finnish economic policy has improved...

The paper presents a fiscal indicator that uses the fiscal situation of the previous year as a benchmark. Different revenue and expenditure items have their own of rules by which the cyclical and discretionary changes are determined. An important step in constructing the new indicator is the...

This study examines the impact of business subsidies on beneficiary and non-beneficiary firms during a short three year period, from 1995 to 1997. The indicator measuring the impact of subsidies on these firms is their Value Added growth over the three-year period. The study is based on...

This paper investigates the effects of business subsidies on the employment of firms in Finland, and explores possible regional differences in the effects. Employment of some 26,000 firms is followed annually between 1995-1998. We find that labour subsidies increase the firms' own employment...

This paper surveys evaluation studies of business subsidy programs conducted in Finland and abroad. The aim is to assess the evaluation methods applied and then recommend the most appropriate ones applicable in Finland. In the paper twenty seven studies are analysed; eighteen using Finnish data...