Bierbrauer, Felix; Brett, Craig; Weymark, John A. - In: Games and Economic Behavior 82 (2013) C, pp. 292-311
Tax competition between two governments who choose nonlinear income tax schedules to maximize the average utility of their residents when skills are unobservable and labor is perfectly mobile is examined. We show that there are no equilibria in which there is a skill type that pays positive...