Article ID Journal Published Year Pages File Type
5062768 Economics Letters 2006 7 Pages PDF
Abstract

This paper analyses the impact of both horizontal and vertical tax competition on central government transfers towards regions, as well as on the softness of the regional budget constraint. We show that tax interactions have no impact on the optimal central government grant whereas they harden the regional budget constraint when the regional debt is not too heavy.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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