Tax competition,public input,and market power |
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Authors: | Steve Billon |
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Institution: | Faculty of Law and Buisness, University of Strasbourg, Strasbourg Cedex, France |
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Abstract: | An increase in the number of local jurisdictions providing industrial public goods may lead to a rise in the equilibrium tax rate, in contrast to the case of residential public goods. When local jurisdictions are Leviathans, an increase in competition may expand tax revenues and thus fail to tame the Leviathan, contrary to the conventional wisdom. |
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