Revenue Equalization Systems in a Federation with Tax Evasion

We analyse how vertical or horizontal fiscal equalization affects the overprovision of local public goods due to vertical fiscal externality, when there is tax evasion. The regional governments overspending incentive is examined both in case of a fiscal equalization based on pretax earned income and reported taxable income.

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Year of publication:	2011
Authors:	Grazzini, Lisa ; Petretto, Alessandro
Institutions:	Dipartimento di Scienze per l'Economia e l'Impresa, Università degli Studi di Firenze
Subject:	Fiscal federalism \| Equalization \| Marginal Cost of Public Funds \| Tax evasion

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Extent:	application/pdf
Series:	Working Papers - Economics.
Type of publication:	Book / Working Paper
Notes:	19 pages
Classification:	H2 - Taxation, Subsidies, and Revenue ; H41 - Public Goods ; H71 - State and Local Taxation, Subsidies, and Revenue ; H77 - Intergovernmental Relations; Federalism
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008862086