Factor mobility and redistribution
This chapter reviews recent theoretical work on the effect of factor mobility and the ensuing tax competition on the capacity of governments to raise revenue and redistribute income. It focuses on three issues: the relevance and limitations of the "race to the bottom" result, the benefits and pitfalls of partial coordination and the incidence of factors mobility on social security systems.
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|Note:||In : In J.V. Henderson and J.-F. Thisse (eds.), Handbook of Regional and Urban Economics. Volume 4: Cities and Geography. Amsterdam, Elsevier North-Holland, 2529-2560, 2004|
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