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dc.contributor.authorBecker, Daniel Thomasen_US
dc.contributor.authorRauscher, Michaelen_US
dc.description.abstractIs tax competition good for economic growth? The paper addresses this question by means of a simple model of endogenous growth. There are many small jurisdictions in a large federation and individual governments benevolently maximise the welfare of immobile residents. Investment is costly: Quadratic installation and de-installation costs limit the mobility of capital. The paper looks at optimal taxation and long-run growth. In particular, the effects of variations in the cost parameter on economic growth and taxation are considered. It is shown that balanced endogenous growth paths do not always exist, that, if they exist, the economic growth rate is positively related to the mobility of capital, that the impact of the mobility prameter on the tax rate is ambiguous and that the tax rate may go to zero even if mobility costs are strictly positive.en_US
dc.publisherUniv., Wirtschafts- und Sozialwiss. Fak. Rostocken_US
dc.relation.ispartofseriesThünen-Series of Applied Economic Theory 74en_US
dc.subject.keywordFiscal Federalismen_US
dc.subject.keywordTax Competitionen_US
dc.subject.keywordEndogenous Growthen_US
dc.subject.stwNeue Wachstumstheorieen_US
dc.subject.stwOptimale Besteuerungen_US
dc.subject.stwGleichgewichtiges Wachstumen_US
dc.titleFiscal competition in space and time: An endogenous-growth approachen_US
dc.typeWorking Paperen_US
Appears in Collections:Thünen Series of Applied Economic Theory, Universität Rostock

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