1999/06/01 by John Douglas Wilson, John D. Wilson · 14 citations
Social Sciences · Economics, Econometrics and Finance · Business, Management and Accounting · #Local Government Finance and Decentralization #Fiscal Policy and Economic Growth #Corporate Taxation and Avoidance
paper · doi:10.1086/ntj41789394
A central message of the tax competition literature is that independent governments engage in wasteful competition for scarce capital through reductions in tax rates and public expenditure levels. This paper discusses many of the contributions to this literature, ranging from early demonstrations of wasteful tax competition to more recent contributions that identify efficiencyenhancing roles for competition among governments. Such roles involve considerations not present in earlier models, including imperfectly-competitive market structures, government commitment problems, and political economy considerations.