municipalities and nations than among intermediate levels of government. Second, tax interactions are, in general, stronger than … expenditure interactions, and horizontal tax interactions appear to be stronger than vertical interactions. Third, both tax … competition and fiscal decentralization both increase horizontal tax competition and they decrease vertical tax competition …

The tax competition for mobile capital, in particular the reluctance of small countries to agree on measures of tax … of capital taxation, where the asymmetric member states of a union choose a common, federal tax rate in the first stage …, and then non-cooperatively set local tax rates in the second stage. We show that this mechanism effectively reduces …