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tax externalities across state-levels of fiscal advantage, showing that tax increases can be expansionary -- even without … externalities and horizontal tax competition. The model shows that, irrespective of federal redistribution, the contractionary …
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externalities in the form of inter-regional capital tax competition and technical externalities in the form of inter … and technical externalities but free-ride on the transfer system. Efficiency can be achieved by introducing a second …
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In this paper, commuting is introduced to a federal economy where benevolent lower-level (state) governments levy an ad valorem tax on labour income. This results in inefficiently low levels of taxation, even when households as a whole do not migrate. Indeed, rather than attracting more workers...
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changes. Moreover, the evidence indicates that the vertical and horizontal fiscal externalities interact. These results have …
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