Dynamic capital tax coordination and public capital

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  • 動学的資本税協調と公的資本形成
  • ドウガクテキ シホンゼイ キョウチョウ ト コウテキ シホン ケイセイ

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Abstract

We expand the static tax competition models in symmetric small regions, which were indicated by Zodrow and Mieszkowski (1986) and Wilson (1986), to a dynamic tax competition model in large regions, taking consideration of the regional asymmetry of productivity of public capital and the existence of capital accumulation. We then analyzed the consequence from tax competition and the impact to economic welfare by tax coordination.

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