Does tax competition soften regional budget constraint ?

Emmanuelle Taugourdeau ()
Additional contact information
Emmanuelle Taugourdeau: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper analyses the impact of both horizontal and vertical tax competition on central government transfers towards regions, as well as on the softness of the regional budget constraint. We show that tax interactions have no impact on the optimal central government grant whereas they harden the regional budget constraint when the regional debt is not too heavy.

Keywords: Tax competition; Soft budget constraint; Fiscal federalism (search for similar items in EconPapers)
Date: 2006-02
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Published in Economics Letters, 2006, 90 (2), pp.230-236

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:halshs-00094283

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().