This paper is concerned with a policy oriented macroeconomic experiment involving an 'international' economy with a relatively small 'home' country and a large 'foreign' country. It compares the economic performance of two alternative tax systems as a means to finance unemployment benefits: a...

This paper is concerned with a policy oriented macroeconomic experiment involving an international economy with a relatively small home country and a large foreign country. It compares the economic performance of two alternative tax systems as a means to finance unemployment benefits: a...

This paper analyzes fiscal competition under budget rigidities and tax equity (fairness norms). We outline a numerically solvable political economic model that treats the outcome of tax competition as one argument in the governments utility function, the others being public expenditure and tax...