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Taxes levied on production processes (e.g. VAT), are today a very important source of government revenues in developed economies. Theories of optimal taxation conclude that these taxes are detrimental to production efficiency, when firms operate in perfectly competitive markets. These theories...
Persistent link: https://www.econbiz.de/10011509397
Persistent link: https://www.econbiz.de/10011715043
Taxes levied on production processes (e.g. VAT), are today a very important source of government revenues in developed economies. Theories of optimal taxation conclude that these taxes are detrimental to production efficiency, when firms operate in perfectly competitive markets. These theories...
Persistent link: https://www.econbiz.de/10011775928
Persistent link: https://www.econbiz.de/10003915544
Persistent link: https://www.econbiz.de/10003997129
Persistent link: https://www.econbiz.de/10009507442
This paper analyses the impact of vertical grants on local public sector efficiency. First, we develop a theoretical model in which the bureaucrat sets the tax price while voters choose the quantity of public services. In this model, grants reduce efficiency if voters do not misinterpret the...
Persistent link: https://www.econbiz.de/10009711825
Persistent link: https://www.econbiz.de/10010248217
This paper analyses the impact of vertical grants on local public sector efficiency. First, we develop a theoretical model in which the bureaucrat sets the tax price while voters choose the quantity of public services. In this model, grants reduce efficiency if voters do not misinterpret the...
Persistent link: https://www.econbiz.de/10011504827
Persistent link: https://www.econbiz.de/10002140583