Horst, A. van der

country labour capital income tax rate tax base unemployment model effect welfare taxation table figure tax rates european production consumption share profit formula state apportionment employment increase transfer formula apportionment consolidation value section market unemployment rate supply household revenue member states equation government elasticity factor change parameter subsidiary substitution variation labour supply multinational investment 0.02 equity equilibrium compliance costs price labour income tax 0.03 growth low-tax countries member european union welfare effects system population calibration union welfare cost benefit substitution elasticity paper analysis weight distortion income tax stylised model reform labour market policy tax competition 0.12 tax revenues low-tax tax increase