Fiscal Competition in Space and Time

David Wildasin

Public Economics from University Library of Munich, Germany

Abstract: This paper analyzes fiscal competition among numerous spatially- separated jurisdictions in an explicitly dynamic framework. The degree of factor mobility between jurisdictions is imperfect because it is costly and time-consuming to adjust factor stocks. Even if it is harmful in the long run, taxation of mobile factors redistribute income in favor of the owners of immobile resources in the short run. The optimal tax on mobile factors is lower, the faster the speed with which factors adjust to fiscal policy. Anticipated taxes are less beneficial than those that can be imposed unexpectedly.

Keywords: fiscal; competition; tax; competition (search for similar items in EconPapers)
JEL-codes: D6 D7 H (search for similar items in EconPapers)
Date: 2001-12-10
New Economics Papers: this item is included in nep-mac and nep-pbe
Note: Type of Document - ; prepared on TeX; figures: request from author
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Fiscal competition in space and time (2003)
Working Paper: Fiscal Competition in Space and Time (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwppe:0112004

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