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Agglomeration, tax competition, and fiscal equalization

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  • Matthias Wrede

    () (Philipps-University Marburg)

Abstract

This paper analyzes the impact of fiscal equalization on asymmetric tax competition when positive agglomeration externalities are present. It shows that equalization of standardized tax revenue improves the spatial allocation of capital provided that agglomeration externalities are sufficiently strong.

Suggested Citation

  • Matthias Wrede, 2008. "Agglomeration, tax competition, and fiscal equalization," MAGKS Papers on Economics 200818, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  • Handle: RePEc:mar:magkse:200818
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    File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/18-2008_wrede.pdf
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    References listed on IDEAS

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    Cited by:

    1. repec:kap:itaxpf:v:24:y:2017:i:6:d:10.1007_s10797-016-9429-9 is not listed on IDEAS
    2. Jordi Jofre-Monseny, 2010. "Is agglomeration taxable?," Working Papers 2010/15, Institut d'Economia de Barcelona (IEB).
    3. Brülhart, Marius & Bucovetsky, Sam & Schmidheiny, Kurt, 2015. "Taxes in Cities," Handbook of Regional and Urban Economics, Elsevier.
    4. Benjamin Wirth & Davidt Hardt & Isabella Lehmann, 2016. "Capitalization of Local Taxes and Expenditures - The case of Bavarian Municipalities," ERSA conference papers ersa16p773, European Regional Science Association.
    5. Caterina Liesegang & Marco Runkel, 2016. "Tax Competition and Fiscal Equalization under Corporate Income Taxation," CESifo Working Paper Series 6011, CESifo Group Munich.

    More about this item

    Keywords

    Agglomeration; tax competition; fiscal equalization;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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