Double Dividend with Involuntary Unemployment:
Efficiency and Intergenerational Equity

Abstract : This paper analyzes the double dividend and distributional issues within an overlapping
generations models framework with involuntary unemployment. We characterize
the necessary conditions for the obtention of a double dividend when the revenue of
the environmental tax is recycled by a variation of the labor tax rate. We show that an
employment dividend may occur without any efficiency dividend and that the young
generation is not always harmed by the fiscal reform, even without any
intergenerational transfers. Therefore, three dividends
(environmental, efficiency and intergenerational equity) can simultaneously occur.
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Submitted on : Thursday, August 24, 2006 - 5:36:35 PM
Last modification on : Wednesday, October 3, 2018 - 8:54:02 PM
Long-term archiving on : Monday, April 5, 2010 - 10:36:58 PM

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Mireille Chiroleu-Assouline, Mouez Fodha. Double Dividend with Involuntary Unemployment:
Efficiency and Intergenerational Equity. Environmental and Resource Economics, Springer, 2005, 31 (4), pp.389-403. ⟨10.1007/s10640-005-2040-7⟩. ⟨halshs-00089913⟩

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