Fredriksson, Per G.; Matschke, Xenia; Minier, Jenny - Department of Economics, University of Connecticut - 2008
would be federal district-level taxation which accounts both for cross-boundary pollution and differences in industry … the location of polluting industries and the associated pollution damages, the majority party may therefore impose sub …-optimally high or low pollution taxes due to a majority bias. We show that majority bias can influence the social-welfare ranking of …