Within the framework of spatial tax competition with cross-border shopping, we examine the choice of tax method between ad valorem tax and unit (specific) tax. The paper shows that governments endogenously choose ad valorem tax not because of a classic welfare reason, but because it is a good...

This paper presents a neoclassical growth model comprising education and child labor with a focus on developing and aid-receiving countries to demonstrate cyclical growth and bifurcation in economic development. The appearance of multiple equilibria has often been attributed to the internal...

This article describes a quantitative analysis of Japanese equalisation transfers based on the fiscal externality models of Hartwick, Boadway and Flatters. In particular, it examines whether the actual level of equalisation transfers matches the theoretically optimal level from the efficiency...

The welfare effects of capital market integration are examined under a model of tax competition with two asymmetric countries. The asymmetry is expressed through the labor market: one country has a perfect labor market whereas the other country is unionized. Our results show that the welfare...

We analyze models with interjurisdictional spillovers among heterogeneous jurisdictions, such as CO2 emissions that affect the global environment. Each jurisdiction's emissions depend upon the local stock of capital, which is interjurisdictionally mobile and subject to local taxation. In...

This paper analyzes how a fiscal transfer scheme affects tax cooperation in a repeated-interaction model of tax competition. In particular, the paper studies whether a fiscal transfer scheme promotes or blocks voluntary tax cooperation. It is shown that the larger the scale of fiscal transfer...

This study deals with an analysis of allocation of government authority between local and central governments. Using a relatively simple model, we examine three classes of issues: First, what type of public project is implemented under a (de)centralized system? Second, is the size of governments...

Concentrating on the property of information infrastructure, this paper examines the impact of publicly funded technology development on the spatial allocation of population and social welfare. Information and communication technologies attract much attention as elements of change in regional...