Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/74473 
Year of Publication: 
2013
Series/Report no.: 
Economics Discussion Papers No. 2013-31
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
In this paper, the authors analyze the behavior of local governments on capital taxation when the financial choices in terms of a public good quality are done by a central planner. More specifically, they ask the question whether a local government has an interest to tax the mobile factor in addition to the tax on representative households or not. The authors show, through a comparison of social welfare given the strategies chosen by the locals governments, that whatever the quality of the public good and its cost is, a local government always has an interest to tax the mobile factor. This leads to a Nash-equilibrium in dominant strategy in their model.
Subjects: 
tax competition
public goods
taxation
quality
welfare
JEL: 
D00
H20
H41
H70
H71
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
508.12 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.