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Interjurisdictional competition with adverse selection

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  • Hernández-Murillo, Rubén

Abstract

In this paper, we study the welfare consequences of imposing alternative regimes of competition between two local governments that compete for mobile firms which have private information on their degree of mobility.

Suggested Citation

  • Hernández-Murillo, Rubén, 2019. "Interjurisdictional competition with adverse selection," Journal of Public Economics, Elsevier, vol. 173(C), pages 85-95.
    • Handle: RePEc:eee:pubeco:v:173:y:2019:i:c:p:85-95
    DOI: 10.1016/j.jpubeco.2019.01.012
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    More about this item

    Keywords

    Interjurisdictional competition; Asymmetric information; Constitutional constraints; Fiscal policy;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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