Strategic Tax Competition with a Mobile Population

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This paper analyzes a model of strategic tax competition with mobile capital and mobile identical consumers. The results of the model are compared to the traditional strategic tax competition model with immobile population. In addition to the fiscal and pecuniary externalities present in the standar...

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Autor principal: Fernández, Gonzalo E.
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2005
Materias:
Ciencias Económicas
model of strategic tax competition
mobile capital
mobile identical consumers
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/164716
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-164716
record_format dspace
spelling I19-R120-10915-1647162024-04-11T20:02:25Z http://sedici.unlp.edu.ar/handle/10915/164716 Strategic Tax Competition with a Mobile Population Fernández, Gonzalo E. 2005-11 2005 2024-04-11T18:01:12Z en Ciencias Económicas model of strategic tax competition mobile capital mobile identical consumers This paper analyzes a model of strategic tax competition with mobile capital and mobile identical consumers. The results of the model are compared to the traditional strategic tax competition model with immobile population. In addition to the fiscal and pecuniary externalities present in the standard model, a new effect shows up in the mobility model to affect provision of the public good. As with the pecuniary externality, this new effect depends on whether the jurisdictions are net exporters or net importers of capital. Thus, in a symmetric set up, the mobility effect along with the pecuniary externality disappear, yielding unambiguous underprovision of the public good. While in the asymmetric case both models have the same qualitative results, the mobility model strengthens the effects of the pecuniary externality. The above results are obtained by comparing the form of the first-order conditions between the mobility and immobility cases. The remaining question is whether or not the equilibrium levels of the public goods conform to the predicted tendencies. This question is answered with an example. The results of this exercise show that when the jurisdiction is a net exporter of capital, the level of the public good is lower in the mobility case than in the immobility case. However, if the jurisdiction is a net importer of capital, the public good level is sometimes higher and sometimes lower in the mobility case, contrary to predictions. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
model of strategic tax competition
mobile capital
mobile identical consumers
spellingShingle Ciencias Económicas
model of strategic tax competition
mobile capital
mobile identical consumers
Fernández, Gonzalo E.
Strategic Tax Competition with a Mobile Population
topic_facet Ciencias Económicas
model of strategic tax competition
mobile capital
mobile identical consumers
description This paper analyzes a model of strategic tax competition with mobile capital and mobile identical consumers. The results of the model are compared to the traditional strategic tax competition model with immobile population. In addition to the fiscal and pecuniary externalities present in the standard model, a new effect shows up in the mobility model to affect provision of the public good. As with the pecuniary externality, this new effect depends on whether the jurisdictions are net exporters or net importers of capital. Thus, in a symmetric set up, the mobility effect along with the pecuniary externality disappear, yielding unambiguous underprovision of the public good. While in the asymmetric case both models have the same qualitative results, the mobility model strengthens the effects of the pecuniary externality. The above results are obtained by comparing the form of the first-order conditions between the mobility and immobility cases. The remaining question is whether or not the equilibrium levels of the public goods conform to the predicted tendencies. This question is answered with an example. The results of this exercise show that when the jurisdiction is a net exporter of capital, the level of the public good is lower in the mobility case than in the immobility case. However, if the jurisdiction is a net importer of capital, the public good level is sometimes higher and sometimes lower in the mobility case, contrary to predictions.
format Objeto de conferencia
Objeto de conferencia
author Fernández, Gonzalo E.
author_facet Fernández, Gonzalo E.
author_sort Fernández, Gonzalo E.
title Strategic Tax Competition with a Mobile Population
title_short Strategic Tax Competition with a Mobile Population
title_full Strategic Tax Competition with a Mobile Population
title_fullStr Strategic Tax Competition with a Mobile Population
title_full_unstemmed Strategic Tax Competition with a Mobile Population
title_sort strategic tax competition with a mobile population
publishDate 2005
url http://sedici.unlp.edu.ar/handle/10915/164716
work_keys_str_mv AT fernandezgonzaloe strategictaxcompetitionwithamobilepopulation
_version_ 1807222759278772224

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