We examine how the overlap of tax bases in a federal economy affects economic growth. In our model the central and local governments have different objectives and each government finances its own public service using taxes levied on the same income tax base. The optimal tax rate for the...

This paper discusses how the externality of environmental damage affects the equilibrium properties of a simple overlapping generations model with multiple regions. Simulation results indicate that the environmental policy of the government decreases capital accumulation. When the government...