Ad valorem taxes and the fiscal gap in federations

Christos Kotsogiannis and Marti­nez, Diego
Authors registered in the RePEc Author Service: Diego Martínez ()

Economics Letters, 2008, vol. 99, issue 3, pages 431-434

Abstract: This paper shows that the federal government can always achieve the second-best optimum of public good provision, but a precise evaluation of the fiscal gap requires an explicit consideration of the underlying fundamentals of the federal economy.

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