A Note on the Composition of Public Expenditure under Capital Tax Competition
Abstract
Keen and Marchand ( Journalof Public Economics, 1997, 66, 33–53) argue that undercapital tax competition, the composition of public expenditureis inefficient in that too much is spent on public inputs benefitinglocal business and too little on public goods benefiting residents.Their result depends on labor immobility. This note shows thatthe Keen-Marchand argument may not hold if both labor and capitalare mobile. An interesting case is identified where capital taxationdoes not distort the mix of public goods and public inputs, eventhough the overall level of public expenditure is inefficientlylow. Copyright Kluwer Academic Publishers 2000Download Info
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Bibliographic Info
Article provided by Springer in its journal International Tax and Public Finance.
Volume (Year): 7 (2000)
Issue (Month): 6 (December)
Pages: 691-697
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102915
Related research
Keywords: capital tax competition; public inputs; public goods;References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Matsumoto, Mutsumi, 2008. "Redistribution and regional development under tax competition," Journal of Urban Economics, Elsevier, vol. 64(2), pages 480-487.e1, September.
- Heinz Handler & Andreas Knabe & Bertrand Koebel & Margit Schratzenstaller & Sven Wehke, 2005. "The Impact of Public Budgets on Overall Productivity Growth," WIFO Working Papers 255, WIFO.
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"Mobile Tax Base as a Global Common,"
CESifo Working Paper Series
2144, CESifo Group Munich.
- Kai Konrad, 2008. "Mobile tax base as a global common," International Tax and Public Finance, Springer, vol. 15(4), pages 395-414, August.
- Nelly Exbrayat & Thierry Madiès & Stéphane Riou, 2010. "International tax competition: do public good spillovers matter?," International Tax and Public Finance, Springer, vol. 17(5), pages 479-500, October.
- Shun-ichiro Bessho & Kimiko Terai, 2011.
"Competition for private capital and central grants: the case of Japanese industrial parks,"
Economics of Governance,
Springer, vol. 12(2), pages 135-154, June.
- Shun-ichiro Bessho & Kimiko Terai, 2008. "Competition for Private Capital and Central Grants: The Case of Japanese Industrial Parks," Working Papers 080909, University of California-Irvine, Department of Economics.
- Matsumoto, Mutsumi, 2004. "The mix of public inputs under tax competition," Journal of Urban Economics, Elsevier, vol. 56(2), pages 389-396, September.
- Yongzheng Liu & Jorge Martinez-Vazquez, 2011. "Public Input Competition, Stackelberg Equilibrium and Optimality," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1123, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Rainald Borck, 2005.
"Fiscal Competition, Capital-Skill Complementarity, and the Composition of Public Spending,"
Discussion Papers of DIW Berlin
504, DIW Berlin, German Institute for Economic Research.
- Rainald Borck, 2006. "Fiscal Competition, Capital-Skill Complementarity, and the Composition of Public Spending," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(4), pages 488-499, February.
- Lenka Šťastná, 2009.
"Spatial Interdependence of Local Public Expenditures: Selected Evidence from the Czech Republic,"
Working Papers IES
2009/12, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Mar 2009.
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"Public goods, unemployment and policy coordination,"
Regional Science and Urban Economics,
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- Christoph Sauer & Margit Schratzenstaller, 2002. "Strategies Of International Fiscal Competition For Foreign Direct Investment In A Model With Impure Public Inputs," Departmental Discussion Papers 115, University of Goettingen, Department of Economics.
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"Fiscal competition in a transition economy,"
BOFIT Discussion Papers
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- Markus Leibrecht & Michael Klien & Oezlem Onaran, 2011. "Globalization, welfare regimes and social protection expenditures in Western and Eastern European countries," Public Choice, Springer, vol. 148(3), pages 569-594, September.
- Carsten Colombier & Michael Pickhardt, 2005. "A Note on Public Input Specifications," International Advances in Economic Research, Springer, vol. 11(1), pages 13-18, March.
- Matsumoto, Mutsumi & Feehan, James P., 2010. "Capital-tax financing and scale economies in public-input production," Regional Science and Urban Economics, Elsevier, vol. 40(2-3), pages 116-121, May.
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