“I find it remarkable that virtually all of the large difference in labor supply between France and the United States is due to differences in tax systems. I expected institutional constraints on the operation of labor markets and the nature of the unemployment benefit system to be more important. I was surprised that the welfare gain from reducing the intratemporal tax wedge is so large.” ImportantStatesDifferencesUnitedUnited StatesTaxesBenefitsGainsEconomicsLaborDuesExpectedFranceOperationsWelfareRemarkableUnemploymentReducingConstraintsWedgesTax SystemUnemployment Benefits Author:Edward C. Prescott
“The purpose for a tax system is to collect needed revenue at the least cost to the people.” PeoplePurposeNeededCostTaxesRevenueTax System Author:Edward C. Prescott
“In the Great Depression, employment was not low because investment was low. Employment and investment were low because labor market institutions and industrial policies changed in a way that lowered normal employment.” WayPolicyChangedNormalLowsLaborInstitutionsInvestmentEmploymentGreat Depression Author:Edward C. Prescott
