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Fiscal competition in a transition economy

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  • Solanko, Laura

Abstract

The paper analyses fiscal competition for mobile capital between identical regions in a transition country.A framework similar to Keen-Marchand (1997) is used to analyse welfare effects of regional competition.It is shown that in very early transition when the share of the old sector is overwhelming, consumers in a transition economy may be better off in a competitive equilibrium.The decision-makers, however, would prefer to coordinate their fiscal policies.

Suggested Citation

  • Solanko, Laura, 2001. "Fiscal competition in a transition economy," BOFIT Discussion Papers 4/2001, Bank of Finland Institute for Emerging Economies (BOFIT).
    • Handle: RePEc:zbw:bofitp:bdp2001_004
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    Cited by:

    1. Sergii Slukhai, 2009. "Inter-Location Small Business Tax Rate Variation in Ukraine: What Is Behind It?," Financial Theory and Practice, Institute of Public Finance, vol. 33(1), pages 49-71.
    2. Irina N. Ilina & Carol S. Leonard & Evgenij E. Plisetskij, 2014. "Russian Regional Resilience: Finance, Cooperation And Resource Abundance (A Case Study Of Khanty-Mansiysk)," HSE Working papers WP BRP 15/PA/2014, National Research University Higher School of Economics.
    3. Libman, Alexander, 2008. "Federalism and regionalism in transition countries: A survey," MPRA Paper 29196, University Library of Munich, Germany.
    4. Laura Solanko, 2002. "Fiscal competition in a transition economy," Public Economics 0209002, University Library of Munich, Germany.

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