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- W2021921105 abstract "This paper examines a system of governments (national, state, or local) that finance public expenditures with taxes on mobile capital (e.g., a property tax). Unlike previous research on tax competition, explicit consideration is given to the general equilibrium determination of the prices at which goods are traded between regions. The analysis identifies inefficiencies in government behavior that are not apparent in models in which the terms of trade are exogenously given. Capital taxation is shown to create an inefficient distribution of public good outputs across regions, accompanied by an inefficient pattern of trade. A model is presented in which the chosen levels of public good outputs differ across regions containing identical residents and production possibilities; there is a wasteful diversity of public good supplies." @default.
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- W2021921105 title "Trade, Capital Mobility, and Tax Competition" @default.
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- W2021921105 doi "https://doi.org/10.1086/261489" @default.
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