EconPapers    
Economics at your fingertips  
 

Factor Ownership and Governmental Strategic Interaction

Kangoh Lee ()
Additional contact information
Kangoh Lee: Towson University

Journal of Public Economic Theory, 2003, vol. 5, issue 2, 345-361

Abstract: A fiscal policy of a jurisdiction alters the allocation of mobile factors among jurisdictions, affecting other jurisdictions and creating an externality. Since each jurisdiction does not take into account the externality, the equilibrium fiscal policy on mobile factors is inefficient. However, individuals of a jurisdiction may own immobile factors located in other jurisdictions. The government for the jurisdiction then considers the effects of its policy on the returns to the immobile factor located in other jurisdictions. The cross-ownership of immobile factors thus affects the efficiency of fiscal policies. The present paper considers capital tax competition as an example to illustrate the effects of the ownership structure of immobile factors on the equilibrium fiscal policy, and extends the analysis to other types of fiscal competition. Copyright 2003 Blackwell Publishing Inc..

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2003&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:bla:jpbect:v:5:y:2003:i:2:p:345-361

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1097-3923

Access Statistics for this article

Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders

More articles in Journal of Public Economic Theory from Association for Public Economic Theory Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-02-23
Handle: RePEc:bla:jpbect:v:5:y:2003:i:2:p:345-361