Intra-Jurisdictional Tax Competition

Jonathan Klick () and Francesco Parisi

Constitutional Political Economy, 2005, vol. 16, issue 4, 387-395

Abstract: While much has been written about inter-jurisdictional competition for tax revenues, especially concerning the choice between harmonization and competition, the literature has largely ignored intra-jurisdiction issues. The few articles examining this issue focus on how lower level governmental entities react to the tax decisions of a national government. However, in some instances, multiple co-equal taxing authorities might share the same base. These bodies face a dilemma over whether to harmonize their policies or to compete. We present a simple model of revenue maximizing tax authorities and derive the conditions under which harmonization dominates competition. Copyright Springer Science+Business Media, Inc. 2005

Keywords: tax; federalism; harmonization; rent-seeking; commons; H20; H77 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10602-005-4319-7

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