Keen, M
Marchand, Maurice
[UCL]
Much attention has been given to the impact of fiscal competition on the level of public expenditure, but relatively little to the impact on its composition. Using a broadly familiar and reasonably rich model of fiscal competition in the presence of mobile capital, this paper establishes a systematic bias in public spending patterns: starting from the non-cooperative equilibrium, and holding tax rates constant, welfare would be improved by a coordinated reduction in the provision of local public inputs and a corresponding increase in the public provision of local public goods benefiting immobile consumers. (C) 1997 Elsevier Science S.A.
Bibliographic reference |
Keen, M ; Marchand, Maurice. Fiscal competition and the pattern of public spending. In: Journal of Public Economics, Vol. 66, no. 1, p. 33-53 (1997) |
Permanent URL |
http://hdl.handle.net/2078.1/46627 |