Fiscal Competition in Space and Time

David Wildasin ()

Public Economics from EconWPA

Abstract: This paper analyzes fiscal competition among numerous spatially- separated jurisdictions in an explicitly dynamic framework. The degree of factor mobility between jurisdictions is imperfect because it is costly and time-consuming to adjust factor stocks. Even if it is harmful in the long run, taxation of mobile factors redistribute income in favor of the owners of immobile resources in the short run. The optimal tax on mobile factors is lower, the faster the speed with which factors adjust to fiscal policy. Anticipated taxes are less beneficial than those that can be imposed unexpectedly.

Keywords: fiscal; competition; tax; competition (search for similar items in EconPapers)
JEL-codes: D6 D7 H (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-pbe
Date: 2001-12-10
Note: Type of Document - ; prepared on TeX; figures: request from author
View list of references View citations in EconPapers

Downloads: (external link)
http://129.3.20.41/eps/pe/papers/0112/0112004.pdf (application/pdf)

Related works:
Working Paper: Fiscal Competition in Space and Time (2000)
Journal Article: Fiscal competition in space and time (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwppe:0112004

Access Statistics for this paper

More papers in Public Economics from EconWPA
Series data maintained by EconWPA ().