Models of international tax competition typically assume the existence of a benevolent government. This paper presents a model which integrates the view of government as source of inefficiency with an analysis of distorting taxes on capital investment, savings and labor income in a common...

This paper studies the consequences of certain widespread policies for the quality and sustainability of growth. These policies cause economic inefficiency, environmental destruction and increased poverty. The paper develops a political economy model to show why the existence of such policies is...