[eng] The adoption of the common currency within a context of European fiscal systems diversity could lead to fierce tax competition. Capital income taxation is at stake. The fiscal gap on the corporate income tax between the European country is measured with the cost of capital concept. We find...

[eng] Tax competition and local government cooperation Thierry Madiès, This paper starts with a survey of major results concerning the effects of tax competition on the supply of local public goods and equilibrium tax rates. We then raise the issue of tax cooperation amongst local governments...

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In this article, we endogenously derive the soft budget constraint phenomenon in a federation when fiscal decisions are delegated to regions. In this framework, the softness of the regional budget constraint results from federal government cross-subsidization objective. We analyse the impact of...

Horizontal and vertical fiscal externalities Academic literature in public finance has recently focused on horizontal externalities coming from interjurisdictional tax competition ? namely among similar types of local governments ? and vertical externalities arising from interactions between...

This paper compares the impact of two equalization transfer schemes on regional budgetary choices: a gross equalization scheme, where ex-post transfers to regions are financed from federal tax revenues, and a net equalization scheme, where region-to-region ex-post transfers allocated by the...