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Fiscal competition for imperfectly-mobile labor and capital: A comparative dynamic analysis

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  • Wildasin, David E.

Abstract

Interjurisdictional flows of imperfectly-mobile migrants, investment, and other productive resources result in the costly dynamic adjustment of resource stocks. This paper investigates the comparative dynamics of adjustment to changes in local fiscal policy with two imperfectly mobile productive resources. The intertemporal adjustments for both resources depend on complementarity/substitutability in production and the adjustment cost technologies for each, implying that the evaluation of the fiscal treatment of one resource must account for the simultaneous adjustment of both.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 95 (2011)
Issue (Month): 11 ()
Pages: 1312-1321

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Handle: RePEc:eee:pubeco:v:95:y:2011:i:11:p:1312-1321

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Web page: http://www.elsevier.com/locate/inca/505578

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Keywords: Fiscal competition; Dynamic tax incidence;

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Citations

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Cited by:
  1. Yutao Han & Patrice Pieretti & Benteng Zou, 2013. "The Dynamics of the Location of Firms – A Revisit of Home-Attachment under Tax Competition," CREA Discussion Paper Series 13-15, Center for Research in Economic Analysis, University of Luxembourg.
  2. Han, Yutao & Pieretti, Patrice & Zou, Benteng, 2013. "An extension of the home-attachment criteria under dynamic tax competition," Economics Letters, Elsevier, vol. 121(3), pages 508-510.
  3. Haufler, Andreas & Lülfesmann, Christoph, 2012. "Reforming an Asymmetric Union: On the Virtues of Dual Tier Capital Taxation," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62082, Verein für Socialpolitik / German Economic Association.
  4. Enlinson Mattos & Ricardo Politi, 2014. "Pro-poor tax policy and yardstick competition: a spatial investigation for VAT relief on food in Brazil," The Annals of Regional Science, Springer, vol. 52(1), pages 279-307, January.

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