A theoretical model describes the local choice of the tax rate on capital income. It establishes preferences and various fiscal conditions - including the tax rates of competing jurisdictions - as determinants of the tax rate. The empirical implications are tested using a large panel of...

In a theoretical model local jurisdictions provide a public input an d a public consumption good financed by a tax on capital income. When deciding about tax rate and budget structure the jurisdictions will generally respond to each others fiscal choices irrespective of whether the policy is...

This paper explores the effects of fiscal competition on local land use. A theoretical analysis considers the tradeoff faced by a local government deciding about the amount of land made available for commercial or residential uses, when its expansion has adverse effects on the quality of life....

A theoretical model describes the local choice of the tax rate on capital income. It establishes preferences and various fiscal conditions - including the tax rates of competing jurisdictions - as determinants of the tax rate. The empirical implications are tested using a large panel of...

Verschiedene Verbindungen zwischen lokalen Kapitaleinheiten können Komplementaritäten in den Standortentscheidungen begründen: Skalenerträge und Spillovereffekte, Input- Output-Beziehungen bei Transportkosten und EinkommenskreislaufefTekte. In einem stilisierten Modell wird ihr simultaner...

This paper discusses whether the dominant position of the Old Laender's economy in the unified Germany hampers the reemergence of industrial production in the New Laender. For that purpose productivity differences are explained by specialization advantages of industrial agglomerations, which are...

This paper discusses how local tax rates of the business tax are set when communities compete for capital as a mobile factor. In a theoretical model communities provide public inputs financed by a tax on capital income in order to maximize a general objective function, which includes residents'...