Resource title

Fiscal competition in space and time: an endogenous-growth approach

Resource image

image for OpenScout resource :: Fiscal competition in space and time: an endogenous-growth approach

Resource description

Is tax competition good for economic growth? The paper addresses this question by means of a simple model of endogenous growth. There are many small jurisdictions in a large federation and individual governments benevolently maximise the welfare of immobile residents. Investment is costly: Quadratic installation and de-installation costs limit the mobility of capital. The paper looks at optimal taxation and long-run growth. In particular, the effects of variations in the cost parameter on economic growth and taxation are considered. It is shown that balanced endogenous growth paths do not always exist and effects of changes in installation costs are ambiguous.

Resource author

Daniel Thomas Becker, Michael Rauscher

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26093

Resource license

Adapt according to the presented license agreement and reference the original author.