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.
Working document
English
Concentració industrial; Política fiscal; Competència (Dret); Industrial concentration; Fiscal policy; Competent authority
Institut d’Economia de Barcelona
Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions
IEB Working Paper 2009/05
[WP E-IEB09/05]
cc-by-nc-nd, (c) Wrede, 2009
http://creativecommons.org/licenses/by-nc-nd/3.0/es/