The Efficiency Consequences of Local Revenue Equalization: Tax Competition and Tax Distortions
نویسندگان
چکیده
منابع مشابه
The Efficiency Consequences of Local Revenue Equalization: Tax Competition and Tax Distortions
This paper shows how a popular system of federal revenue equalization grants can limit tax competition among subnational governments, correct fiscal externalities, and increase government spending. Remarkably, an equalization grant can implement efficient policy choices by regional governments, regardless of a wide variety of differences in regional tax capacity, tastes for public spending, and...
متن کاملAgglomeration , tax competition , and fiscal equalization
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. JEL Classification: R12, H71, H73.
متن کاملThe distributional consequences of tax reforms under market distortions
In this paper we examine the importance of imperfect competition in product and labour markets in determining the long-run welfare effects of tax reforms assuming agent heterogeneneity in capital holdings. Each of these market failures, independently, results in welfare losses for at least a segment of the population, after a capital tax cut and a concurrent labour tax increase. However, when c...
متن کاملState Government Tax Revenue , Tax Revenue Composition and Tax Effort Index : An Assessment of the 1978 - 97 period
Fiscal deficit concerns, especially during sever downturns, and uncertainties regarding future federal grants have underscored the importance of relying on state own-revenues including taxes. In this paper, we derive an equation for state total tax revenue-output ratio and estimate it using a panel of forty-nine states over the period 1978-97 (the sample period reflects a break in some key seri...
متن کاملState Capacity, Capital Mobility, and Tax Competition
Abstract The theory of international tax competition suggests that governments attempt to attract mobile capital bases by undercutting the foreign capital tax rate. An analysis of the role that state capacity plays in tax policymaking under international pressures is, however, missing. The central contribution of our study is to highlight the importance of the interaction between state capaci...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Public Economic Theory
سال: 2006
ISSN: 1097-3923,1467-9779
DOI: 10.1111/j.1467-9779.2006.00255.x