Tax Competition Reconsidered

Amrita Dhillon (), Myrna Wooders () and Benjamin C. Zissimos ()

Journal of Public Economic Theory, 2007, vol. 9, issue 3, pages 391-423

Abstract: In a classic model of tax competition, this paper shows that the level of public good provision and taxation in a decentralized equilibrium can be efficient or inefficient with either too much or too little public good provision. The key is whether there exists a unilateral incentive to deviate from the efficient state and, if so, whether this entails raising or lowering taxes. A priori, there is no reason to suppose the incentive is in either one direction or the other. Copyright 2007 Blackwell Publishing, Inc..

Date: 2007

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Related works:
Working Paper: Tax Competition Reconsidered (2001)
Working Paper: Tax Competition Reconsidered (2006)
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