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What are the macroeconomic effects of tax adjustments in response to large public debt shocks in highly integrated economies? The answer from standard closed-economy models is deceptive, because they underestimate the elasticity of capital tax revenues and ignore cross-country spillovers of tax...
Persistent link: https://www.econbiz.de/10013046730
Theory predicts that strategically-determined tax rates induce negative externalities across countries in relative …
Persistent link: https://www.econbiz.de/10013246639
their classmates do worse. The theory presented below reconciles all of these facts by recognizing that classroom teaching … ranges away from equilibrium levels will adversely affect educational output. The theory argues for a particular non … by lowering class size. The theory provides a measurable and operational way to define school quality that can be tested …
Persistent link: https://www.econbiz.de/10013249228
and quite inconsistent empirical support of the theory. More importantly, none of this work addresses important questions …
Persistent link: https://www.econbiz.de/10013112847
We revisit the classic problem of tax competition in the context of federal nations, and derive a positive theory of …
Persistent link: https://www.econbiz.de/10012765361
This paper studies how to design a fiscal constitution that, by capitalizing intergenerational spillovers into land values, is able to protect future generations from expropriation and to generate optimal investment in intergenerational public goods. In particular, we study how to accomplish...
Persistent link: https://www.econbiz.de/10013224175
The standard international tax model is extended to allow for heterogeneous firms when agglomeration forces are …
Persistent link: https://www.econbiz.de/10013152382
The behavior of taxes on capital income in the recent decades points to the notion that international tax competition …, a poor enforcement of international taxes would generate political processes that would reduce significantly the …
Persistent link: https://www.econbiz.de/10013219197
This paper reconsiders the question of whether tax competition for mobile capital leads to tax rates on capital that are too low or too high from the combined viewpoint of the competing regions (or countries in an economic union). In contrast to standard models of tax competition, both commodity...
Persistent link: https://www.econbiz.de/10013237550
We study the direct and spillover effects of local state capacity using the network of Colombian municipalities. We model the determination of local and national state capacity as a network game in which each municipality, anticipating the choices and spillovers created by other municipalities...
Persistent link: https://www.econbiz.de/10013060686