Mixed Taxation, Public Goods and Transboundary Externalities: A Model with Large Jurisdictions
This paper concerns income taxation, commodity taxation, production taxation and public good provision in a multi-jurisdiction framework with transboundary environmental damage. We assume that each jurisdiction is large in the sense that its government is able to influence the world-market producer price of the externality-generating commodity. The decision-problem facing the government in each such jurisdiction is represented by a two-type model (with asymmetric information between the government and the private sector). We show how the possibility to influence the world-market producer price adds mechanisms of relevance for redistribution and externality-correction which, in turn, affect the domestic use of taxation and public goods. Finally, with the noncooperative Nash equilibrium as a reference case, we consider the welfare effects of policy coordination.
|Date of creation:||17 Jun 2008|
|Date of revision:||03 Nov 2008|
|Contact details of provider:|| Postal: |
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
Web page: http://www.econ.umu.se/Email:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hhs:umnees:0747. See general 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: (Kjell-Göran Holmberg)
If references are entirely missing, you can add them using this form.