Journal article
A bargaining model of tax competition
Abstract
This paper develops a model in which competing governments offer financial incentives to induce individual firms to locate within their jurisdictions. Equilibrium is described under three specifications of the supplementary taxes. There is no misallocation of capital under two of these specifications, and there might or might not be capital misallocation under the third. This result contrasts strongly with that of the standard tax competition …
Authors
Han S; Leach J
Journal
Journal of Public Economics, Vol. 92, No. 5-6, pp. 1122–1141
Publisher
Elsevier
Publication Date
June 2008
DOI
10.1016/j.jpubeco.2007.12.003
ISSN
0047-2727