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Ad valorem taxes and the fiscal gap in federations

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Author Info
Kotsogiannis, Christos
Marti­nez, Diego

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Abstract

This paper shows that the federal government can always achieve the second-best optimum of public good provision, but a precise evaluation of the fiscal gap requires an explicit consideration of the underlying fundamentals of the federal economy.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4PNFV4F-2/1/b348ad7552e1cb321b595d25fa9338cc
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 99 (2008)
Issue (Month): 3 (June)
Pages: 431-434
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Handle: RePEc:eee:ecolet:v:99:y:2008:i:3:p:431-434

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  1. Diego Martínez, 2007. "Optimal federal taxes with public inputs," Working Papers 07.16, Universidad Pablo de Olavide, Department of Economics. [Downloadable!]
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