Tax-Price Competition for Internationalized Public Goods
AbstractAccording to globalization, certain kinds of public goods, which used to be working as the goods just in a national economy, are getting internationalized or released for foreigners as well. In addition, those goods often exhibit differentiated features for a certain degree. The goods as such are therefore quite different by nature from the international collective or public goods in the literature. We explore the financing scheme for such kind of internationalized public goods, by a simple model of two countries competing each other with taxing and pricing. Our main results are; 1) The more populated the foreign country, the better off the home country if the degree of product differentiation is sufficiently high, or the foreign is sufficiently populated. Otherwise it may not; 2) While it is distorted by the governmental incentives to utilize foreigners as financial resources, the welfare in a Nash equilibrium is always better than that gained by autarky for any relative size of population and for any degree of differentiation; 3) While, in standard theory of game or oligopoly, more limited strategies for players tend to provide better off in equilibrium as a paradoxical consequence, discriminatory-pricing equilibrium here is better off for sufficiently larger country rather than more limited, uniform pricing scheme
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 Far Eastern Meetings with number 443.
Date of creation: 11 Aug 2004
Date of revision:
Contact details of provider:
Phone: 1 212 998 3820
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC
fiscal competition; country size; product differentiation;
Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.