The paper shows that interjurisdictional competition for mobile factors of production forces the government to raise the efficiency of the public sector and, thus, helps to tame Leviathan governments. However, this result is derived under some restrictive assumptions concerning the kind of tax...

With the advent of globalization, the product market has expanded its horizon beyond belief. In such a scenario, many enterprises try to gain a competitive edge over other competing firms in the market. In order to maintain a healthy competition in the market, it is essential that the...