Fuest, Clemens; Riphan, Regina T. - In: Journal of Economics and Statistics (Jahrbuecher fuer … 221 (2001) 1, pp. 14-31
The theory of fiscal federalism argues that local governments should only tax mobile tax bases for the purpose of charging user taxes which correct for congestion effects. Empirically, we observe that local governments do levy taxes on mobile bases. In Germany, this is the local business tax...
