[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...

We study the business tax ("taxe professionnelle") behavior of the intermediate level (department) of local government in France and test in the same model the two hypotheses that department tax rates are explained by upper tier (region) tax rates and by tax rates chosen by other departments. We...

We examine the effects of tax base sharing on the growth path of an economy in which central and regional governments provide heterogeneous educational services (general and specific training) which increase capital productivity. Our focus is the non co-operative game between two overlapping...

This paper analyses the impact of both the nature of regional public spending and the federal government’s fiscal tools on the softness of the regional budget constraint and the regional provision of public good. We show that i) whatever the nature of regional public spending, the regional...