Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46322
Authors: 
Becker, Johannes
Runkel, Marco
Year of Publication: 
2010
Series/Report no.: 
CESifo working paper: Public Finance 3221
Abstract: 
We introduce transport cost of trade in products into the classical Zodrow and Mieszkowski (1986) model of capital tax competition. It turns out that even small levels of transport cost lead to a complete breakdown of the seminal result, the underprovision of public goods. Instead, there is a symmetric equilibrium with efficient public goods provision in all jurisdictions.
Subjects: 
tax competition
public goods provision
trade
JEL: 
H25
F23
Document Type: 
Working Paper

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