Agglomeration, tax competition, and fiscal equalization

This paper analyzes the impact of fiscal equalization on asymmetric tax competition when positive agglomeration externalities are present. It shows that equalization of standardized tax revenue improves the spatial allocation of capital provided that agglomeration externalities are sufficiently s...

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Veröffentlicht in:MAGKS - Joint Discussion Paper Series in Economics (Band 18-2008)
1. Verfasser: Wrede, Matthias
Format: Arbeit
Sprache:Englisch
Veröffentlicht: 2008
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Zusammenfassung:This paper analyzes the impact of fiscal equalization on asymmetric tax competition when positive agglomeration externalities are present. It shows that equalization of standardized tax revenue improves the spatial allocation of capital provided that agglomeration externalities are sufficiently strong.
ISSN:1867-3678
DOI:10.17192/es2023.0205