We revisit the classic problem of tax competition in the context of federal nations, and derive a positive theory of … partial decentralization. A capital poor median voter wants to use capital taxes to provide public goods. This results in …. Decentralization provides such a commitment: local governments avoid using capital taxes due to the pressure of tax competition. We …

We revisit the classic problem of tax competition in the context of federal nations, and derive a positive theory of … partial decentralization. A capital poor median voter wants to use capital taxes to provide public goods. This results in …. Decentralization provides such a commitment: local governments avoid using capital taxes due to the pressure of tax competition. We …

rivalry in consumption of the publicly provided good. We identify three sources of welfare loss from decentralization … characteristics of the publicly provided good are an important determinant for the welfare costs of decentralization. …