Showing 1 - 10 of 11
Recent literature has emphasized that redistributive grant systems may tend to internalize fiscal externalities arising from tax competition. This paper further explores the conditions under which local grant systems enforced by the state government will enhance efficiency. A system of...
Persistent link: https://www.econbiz.de/10003301010
This paper explores the effects of fiscal competition on local land use. A theoretical analysis considers the tradeoff faced by a local government deciding about the amount of land made available for commercial or residential uses, when its expansion has adverse effects on the quality of life....
Persistent link: https://www.econbiz.de/10012491448
A theoretical analysis considers the impact of a typical system of redistributive fiscal equalizationʺ transfers on the taxing effort of local jurisdictions. More specifically, it shows that the marginal contribution rate, i.e. the rate at which an increase in the tax base reduces those...
Persistent link: https://www.econbiz.de/10002578132
This paper exploits a recent devolution of tax setting powers in the German federation to study the effects of fiscal equalization on subnational governments' tax policy. Based on an analysis of the system of fiscal equalization transfers, we argue that the redistribution of revenues provides...
Persistent link: https://www.econbiz.de/10011906300
We examine how the bidding environment may affect the outcome of tax competition between two countries (or two regions) in attracting a firm's foreign direct investment (FDI).We compare the equilibrium location choice and payoffs from an English auction, with both complete and incomplete...
Persistent link: https://www.econbiz.de/10003967774
This paper explores the conditions under which decentralization and fiscal competition lead to a policy of subsidizing cultural activities. A theoretical analysis discusses these subsidies as a form of local public good provision which makes a city more attractive to highly educated individuals....
Persistent link: https://www.econbiz.de/10010189826
Redistributive grants schemes, such as fiscal equalization, are a common characteristic of local public finance in several countries. However, large and small jurisdictions are treated differently by the respective fiscal equalization schemes that often tend to favour larger jurisdictions. This...
Persistent link: https://www.econbiz.de/10003790563
Persistent link: https://www.econbiz.de/10003497524
A theoretical model describes the local choice of the tax rate on capital income. It establishes preferences and various fiscal conditions - including the tax rates of competing jurisdictions - as determinants of the tax rate. The empirical implications are tested using a large panel of...
Persistent link: https://www.econbiz.de/10011398100
The paper analyzes the effects of a regionally coordinated profit tax in a model with three active countries, one of which is not part of the union, and a globally mobile firm. We show that regional tax coordination can lead to two types of welfare gains. First, for investments that would take...
Persistent link: https://www.econbiz.de/10011408447