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Fiscal and Regulatory Competition: Theory and Evidence

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  • Wallace E. Oates

Abstract

This paper reviews first the theoretical literature and then the empirical studies of interjurisdictional competition among governments. Of central interest is the normative question of whether fiscal and regulatory competition promotes a more efficient functioning of the public sector or whether it is the source of distortions in the public and private sectors. This is a contentious issue; both the theoretical and empirical literature, while providing some rich insights into the potential impact of such competition, do not give us an unambiguous answer to the general normative question. The concluding section offers the author's thoughts on all this with a leaning towards the view that such competition is, on balance, efficiency-enhancing. Copyright Verein für Socialpolitik und Blackwell Publishers Ltd 2002

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Bibliographic Info

Article provided by Verein für Socialpolitik in its journal Perspektiven der Wirtschaftspolitik.

Volume (Year): 3 (2002)
Issue (Month): 4 (November)
Pages: 377-390

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Handle: RePEc:bla:perwir:v:3:y:2002:i:4:p:377-390

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References

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  1. Wilson, John D., 1986. "A theory of interregional tax competition," Journal of Urban Economics, Elsevier, vol. 19(3), pages 296-315, May.
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  23. Rauscher, Michael, 1998. "Leviathan and Competition among Jurisdictions: The Case of Benefit Taxation," Journal of Urban Economics, Elsevier, vol. 44(1), pages 59-67, July.
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Citations

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Cited by:
  1. Laurent Van Malderen & Marcel Gérard, 2012. "Tax Interaction Among Walloon Municipalities: Is There Room For Partisan Monopoly Effect?," ERSA conference papers ersa12p1051, European Regional Science Association.
  2. Marcel Gérard & Laurent van Malderen, 2012. "Tax Interaction among Walloon Municipalities: Is there Room for Yardstick Competition, Intellectual Trend and Partisan Monopoly Effect?," CESifo Working Paper Series 4025, CESifo Group Munich.
  3. Richter, Wolfram F., 2004. "Delaying integration of immigrant labor for the purpose of taxation," Journal of Urban Economics, Elsevier, vol. 55(3), pages 597-613, May.
  4. Simone Moriconi & Pierre M. Picard & Skerdilajda Zanaj, 2012. "Commodity taxation and regulatory competition," CREA Discussion Paper Series 12-15, Center for Research in Economic Analysis, University of Luxembourg.
  5. Libman, Alexander, 2010. "Constitutions, regulations, and taxes: Contradictions of different aspects of decentralization," Frankfurt School - Working Paper Series 138, Frankfurt School of Finance and Management.
  6. Libman, Alexander, 2009. "Essays on Asymmetric Federalism," MPRA Paper 21591, University Library of Munich, Germany.
  7. Eckardt, Martina, 2003. "The Open Method of Co-ordination on Pensions - An Economic Analysis of its Effects on Pension Reforms," Thuenen-Series of Applied Economic Theory 39, University of Rostock, Institute of Economics.
  8. Wallace Oates, 2005. "Toward A Second-Generation Theory of Fiscal Federalism," International Tax and Public Finance, Springer, vol. 12(4), pages 349-373, August.
  9. Edmark, Karin & Ågren, Hanna, 2006. "Identifying Strategic Interactions in Swedish Local Income Tax Policies," Working Paper Series 2006:22, Uppsala University, Department of Economics.
  10. Silke Uebelmesser, 2003. "Harmonisation of Old-Age Security Within the European Union," CESifo Working Paper Series 1108, CESifo Group Munich.
  11. Berthold, Norbert & Neumann, Michael, 2004. "Ballungsprozesse im Standortwettbewerb : Was können die deutschen Bundesländer ausrichten?," Wirtschaftswissenschaftliche Beiträge 71, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
  12. Gore, Tony & Wells, Peter, 2009. "Governance and evaluation: The case of EU regional policy horizontal priorities," Evaluation and Program Planning, Elsevier, vol. 32(2), pages 158-167, May.

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