Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
971227 | Journal of Urban Economics | 2012 | 5 Pages |
Abstract
We introduce transport cost of trade in products into the classical Zodrow and Mieszkowski (1986) model of capital tax competition. It turns out that even small levels of transport cost lead to a complete breakdown of the seminal result, the underprovision of public goods. Instead, there is a symmetric equilibrium with efficient public goods provision in all jurisdictions.
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Economics and Econometrics
Authors
Johannes Becker, Marco Runkel,