Even small trade costs restore efficiency in tax competition
نویسندگان
چکیده
We introduce transport cost of trade in products into the classical Zodrow andMieszkowski (1986) model of capital tax competition. It turns out that even small levels of transport cost lead to a complete breakdown of the seminal result, the underprovision of public goods. Instead, there is a symmetric equilibrium with efficient public goods provision in all jurisdictions. 2012 Elsevier Inc. All rights reserved.
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تاریخ انتشار 2010