Interjurisdictional Competition and the Efficiency of the Public Sector: The Triumph of the Market over the State?

Michael Rauscher ()

No 1624, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: It has been argued in the literature that interjurisdictional competition forces the public sector to increase its efficiency and thus helps to tame Leviathan governments. The paper addresses this hypothesis by means of a simple tax-competition model with a Leviathan state. It is seen that the effects of increased factor mobility on the efficiency of the public sector are ambiguous. A calibration of the model shows that a reduction in public-sector efficiency is possible for parameter constellations which are not unrealistic.

Keywords: Capital Movements; Infrastructure; Public Choice; Tax Competition (search for similar items in EconPapers)
JEL-codes: F20 H21 H40 H73 (search for similar items in EconPapers)
Date: 1997-04
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1624 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:1624

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1624

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().