Keen, Michael; Kotsogiannis, Christos - In: Journal of Public Economic Theory 5 (2003) 2, pp. 177-199
This paper analyzes a simple model of taxation in a federal system within which policymakers are revenue-maximizing Leviathans and fiscal externalities arise not only horizontally, across the "states," but also vertically between levels of government. Such an economy is characterized by...