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Persistent link: https://www.econbiz.de/10012172001
We introduce tax competition for mobile labor into an optimal-taxation model with two skill levels. We analyze a symmetric subgame-perfect Nash equilibrium of the game between two governments and two taxpayer populations. Tax competition reduces the distortion from the informational asymmetry...
Persistent link: https://www.econbiz.de/10003982002
Tax competition between two governments who choose nonlinear income tax schedules to maximize the average utility of its residents when skills are unobservable and labor is perfectly mobile is examined. We show that there are no Nash equilibria in which there is a skill type that pays positive...
Persistent link: https://www.econbiz.de/10009009660
extortionary government. The extortionary government in a closed economy has incentives to subsidize education in order to overcome … their education policies if highly productive labor is fully mobile. Extortionary governments' incentives for education … competition therefore reduces hold-up problems of time consistent extortionary taxation, but also introduces incentives that …
Persistent link: https://www.econbiz.de/10011339679
Persistent link: https://www.econbiz.de/10009518277
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if highly productive labor is mobile. Extortionary governments incentives for a policy that stimulates higher private … education efforts vanish; instead they have incentives to prevent individuals from mobility-increasing education investment. Tax …
Persistent link: https://www.econbiz.de/10011409743
Persistent link: https://www.econbiz.de/10001790722
extortionary government. The extortionary government in a closed economy has incentives to subsidize education in order to overcome … their education policies if highly productive labor is fully mobile. Extortionary governments' incentives for education … competition therefore reduces hold-up problems of time consistent extortionary taxation, but also introduces incentives that …
Persistent link: https://www.econbiz.de/10001573184
Tax competition between two governments who choose nonlinear income tax schedules to maximize the average utility of its residents when skills are unobservable and labor is perfectly mobile is examined. We show that there are no Nash equilibria in which there is a skill type that pays positive...
Persistent link: https://www.econbiz.de/10013130417