This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Fiscal Competition in Space and Time

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
David Wildasin (University of Kentucky)

Additional information is available for the following registered author(s):

Abstract

This paper analyzes fiscal competition among numerous spatially- separated jurisdictions in an explicitly dynamic framework. The degree of factor mobility between jurisdictions is imperfect because it is costly and time-consuming to adjust factor stocks. Even if it is harmful in the long run, taxation of mobile factors redistribute income in favor of the owners of immobile resources in the short run. The optimal tax on mobile factors is lower, the faster the speed with which factors adjust to fiscal policy. Anticipated taxes are less beneficial than those that can be imposed unexpectedly.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://129.3.20.41/eps/pe/papers/0112/0112004.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by EconWPA in its series Public Economics with number 0112004.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 10 Dec 2001
Date of revision:
Handle: RePEc:wpa:wuwppe:0112004

Note: Type of Document - ; prepared on TeX; figures: request from author
Contact details of provider:
Web page: http://129.3.20.41

For technical questions regarding this item, or to correct its listing, contact: (EconWPA).

Related research
Keywords: fiscal competition tax competition;

Other versions of this item:

Find related papers by JEL classification:
D6 - Microeconomics - - Welfare Economics
D7 - Microeconomics - - Analysis of Collective Decision-Making
H - Public Economics

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please 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.:
  1. Clemens Fuest & Bernd Huber, 1999. "Can Tax Coordination Work?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 56(3/4), pages 443-, July.
  2. Huizinga, Harry & Nielsen, Soren Bo, 1997. "Capital income and profit taxation with foreign ownership of firms," Journal of International Economics, Elsevier, vol. 42(1-2), pages 149-165, February. [Downloadable!] (restricted)
    Other versions:
  3. Mieszkowski, Peter, 1972. "The property tax: An excise tax or a profits tax?," Journal of Public Economics, Elsevier, vol. 1(1), pages 73-96, April. [Downloadable!] (restricted)
  4. Baxter, Marianne & Jermann, Urban J, 1997. "The International Diversification Puzzle Is Worse Than You Think," American Economic Review, American Economic Association, vol. 87(1), pages 170-80, March. [Downloadable!] (restricted)
    Other versions:
  5. Hercowitz, Zvi & Pines, David, 1991. "Migration with fiscal externalities," Journal of Public Economics, Elsevier, vol. 46(2), pages 163-180, November. [Downloadable!] (restricted)
    Other versions:
  6. Jensen, Richard & Toma, Eugenia Froedge, 1991. "Debt in a model of tax competition," Regional Science and Urban Economics, Elsevier, vol. 21(3), pages 371-392, November. [Downloadable!] (restricted)
  7. Boadway, Robin, 1979. "Long-run Tax Incidence: A Comparative Dynamic Approach," Review of Economic Studies, Blackwell Publishing, vol. 46(3), pages 505-11, July. [Downloadable!] (restricted)
  8. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December. [Downloadable!] (restricted)
    Other versions:
  9. Daniel S. Hamermesh & Gerard A. Pfann, 1996. "Adjustment Costs in Factor Demand," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1264-1292, September. [Downloadable!] (restricted)
    Other versions:
  10. Lee, Kangoh, 1997. "Tax Competition with Imperfectly Mobile Capital," Journal of Urban Economics, Elsevier, vol. 42(2), pages 222-242, September. [Downloadable!] (restricted)
  11. Uwe Walz & Dietmar Wellisch, 1996. "Strategic provision of local public inputs for oligopolistic firms in the presence of endogenous location choice," International Tax and Public Finance, Springer, vol. 3(2), pages 175-189, May. [Downloadable!] (restricted)
  12. Bradford, David F., 1978. "Factor prices may be constant but factor returns are not," Economics Letters, Elsevier, vol. 1(3), pages 199-203. [Downloadable!] (restricted)
  13. David E. Wildasin, 2000. "Factor mobility and fiscal policy in the EU: policy issues and analytical approaches," Economic Policy, CEPR, CES, MSH, vol. 15(31), pages 337-378, October. [Downloadable!] (restricted)
    Other versions:
  14. Treadway, Arthur B, 1969. "On Rational Entrepreneurial Behaviour and the Demand for Investment," Review of Economic Studies, Blackwell Publishing, vol. 36(106), pages 227-39, April. [Downloadable!] (restricted)
  15. Stephen J. Turnovsky, 2000. "Methods of Macroeconomic Dynamics, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262201232.
  16. Wildasin, David E. & Wilson, John Douglas, 1998. "Risky local tax bases: risk-pooling vs. rent-capture," Journal of Public Economics, Elsevier, vol. 69(2), pages 229-247, June. [Downloadable!] (restricted)
  17. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September. [Downloadable!] (restricted)
  18. Wilson, John D., 1986. "A theory of interregional tax competition," Journal of Urban Economics, Elsevier, vol. 19(3), pages 296-315, May. [Downloadable!] (restricted)
  19. Wildasin, David E. & Wilson, John Douglas, 1996. "Imperfect mobility and local government behaviour in an overlapping-generations model," Journal of Public Economics, Elsevier, vol. 60(2), pages 177-198, May. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please 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.)

  1. Michael Rauscher, 2005. "Tax Competition, Capital Mobility, and Innovation in the Public Sector," Thuenen-Series of Applied Economic Theory 54, University of Rostock, Institute of Economics, Germany. [Downloadable!]
    Other versions:
  2. David Wildasin, 2008. "Public Finance in an Era of Global Demographic Change: Fertility Busts, Migration Booms, and Public Policy," Working Papers 2008-02, University of Kentucky, Institute for Federalism and Intergovernmental Relations. [Downloadable!]
  3. Daniel Becker & Michael Rauscher, 2007. "Fiscal Competition in Space and Time: An Endogenous-Growth Approach," Thuenen-Series of Applied Economic Theory 74, University of Rostock, Institute of Economics, Germany. [Downloadable!]
    Other versions:
  4. David E. Wildasin, 2005. "Fiscal Competition," Working Papers 2005-05, University of Kentucky, Institute for Federalism and Intergovernmental Relations. [Downloadable!]
  5. Kai A. Konrad & Dan Kovenock, 2008. "Competition for FDI with vintage investment and agglomeration advantages," Purdue University Economics Working Papers 1210, Purdue University, Department of Economics. [Downloadable!]
    Other versions:
  6. Gaetan Nicodeme, 2009. "Corporate Income Tax and Economic Distortions," Taxation Papers 15, Directorate General Taxation and Customs Union, European Commission, revised Apr 2009. [Downloadable!]
    Other versions:
  7. Kersten Kellermann, 2004. "Grenzen der Äquivalenzbesteuerung im Systemwettbewerb," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 140(IV), pages 543-568, December. [Downloadable!]
  8. David E. Wildasin, 2005. "Global Competition for Mobile Resources: Implications for Equity, Efficiency, and Political Economy," Working Papers 2005-08, University of Kentucky, Institute for Federalism and Intergovernmental Relations. [Downloadable!]
    Other versions:
  9. Kersten Kellermann, 2008. "Should mobile capital pay for public infrastructure investment?," Empirica, Springer, vol. 35(2), pages 129-143, April. [Downloadable!] (restricted)
  10. David E. Wildasin, 2009. "Fiscal Competition for Imperfectly-Mobile Labor and Capital: A Comparative Dynamic Analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  11. Kaitila, Ville, 2001. "Accession Countries’ Comparative Advantage in the Internal Market: A Trade and Factor Analysis," BOFIT Discussion Papers 3/2001, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
  12. Solanko, Laura, 2001. "Fiscal competition in a transition economy," BOFIT Discussion Papers 4/2001, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
  13. Daniel Becker, 2007. "A Technical Note on Comparative Dynamics in a Fiscal Competition Model," Thuenen-Series of Applied Economic Theory 83, University of Rostock, Institute of Economics, Germany. [Downloadable!]
  14. Laura Solanko, 2002. "Fiscal competition in a transition economy," Public Economics 0209002, EconWPA. [Downloadable!]
  15. Kersten Kellermann, 2006. "A Note on Intertemporal Fiscal Competition and Redistribution," International Tax and Public Finance, Springer, vol. 13(2), pages 151-161, May. [Downloadable!] (restricted)
  16. Robin Boadway & Katherine Cuff & Nicolas Marceau, 2004. "Agglomeration Effects and the Competition for Firms," Asia-Pacific Financial Markets, Springer, vol. 11(5), pages 623-645, September. [Downloadable!] (restricted)
    Other versions:
Statistics
Access and download statistics

Did you know? You may want to explore EconPapers, which displays the same data as IDEAS in a different way.

This page was last updated on 2009-11-14.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.