Tax competition and the determination of the quality of public goods

A. H. Abdessalam
Authors registered in the RePEc Author Service: Eric Kamwa

Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), 2014, vol. 8, No 2014-12, 20 pages

Abstract: In this paper, the author analyzes the behavior of local governments in capital taxation when the financial choices in terms of the quality of public goods are made done by a central planner. More specifically, he asks the question of whether a local government has an interest in taxing the mobile factor in addition to the tax on representative households. Through a comparison of social welfare given the strategies chosen by local governments, the author shows that whatever the quality and cost of public goods, a local government always has an interest in taxing the mobile factor. This leads to a Nash equilibrium in the dominant strategy in their model.

Keywords: Tax competition; public goods; quality; welfare; taxation (search for similar items in EconPapers)
JEL-codes: D00 H20 H41 H70 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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http://dx.doi.org/10.5018/economics-ejournal.ja.2014-12
https://www.econstor.eu/bitstream/10419/95677/1/780760352.pdf (application/pdf)

Related works:
Working Paper: Tax Competition and the Determination of the Quality of Public Goods (2014)
Working Paper: Tax competition and determination of the quality of public goods (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:201412

DOI: 10.5018/economics-ejournal.ja.2014-12

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