@techreport{Krause2004provision,
abstract = {In recent years informational problems have been introduced into local public finance. The
main impetus of the analyses has been on the supply of local public goods, often under tax
competition. The present paper extends recent contributions to study how inter-regionally
mobile capital supplied by the first-period consumption-savings decision of the private sector
is taxed in a closed federation to fund well informed local governments that differ in their
costs of providing public inputs. The modified Samuelson-conditions for the optimal supply
of local public inputs are derived and analyzed for different informational environments and
instrumental abilities of the federal government. There exists a tendency to oversupply the
public input in the low cost region which is also present in a numerical simulation where
different informational environments are compared to the first-best and tax competition.},
author = {G\"{u}nter Krause},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H54; H70; H21; 330; Public Inputs; Asymmetric Information; Federation; Lokales \"{o}ffentliches Gut; Steuerwettbewerb; Interregionale Kapitalmobilit\"{a}t; Finanzf\"{o}deralismus; Asymmetrische Information; Theorie},
language = {eng},
number = {52},
title = {The provision of public inputs in a federation under asymmetric information},
type = {W\"{u}rzburg economic papers},
url = {http://hdl.handle.net/10419/22345},
year = {2004}
}
