Horizontal and vertical fiscal externalities Academic literature in public finance has recently focused on horizontal externalities coming from interjurisdictional tax competition ? namely among similar types of local governments ? and vertical externalities arising from interactions between...

The purpose of this article is to deal with the theoretical funding, the consequences and the empirical relevance of strategic tax interactions among governments. Theoretically, tax competition and yardstick competition models may explain the existence of horizontal interactions namely among...