Ludema, Rodney D; Wooton, Ian - C.E.P.R. Discussion Papers - 1998
mobile and governments impose redistributive taxes. Regional integration is modelled as either increased labour mobility or … lower trade costs. We show that either type of integration may result in a decrease in the intensity of tax competition, and … thus higher equilibrium taxes. Moreover, economic integration must increase taxes when the forces of agglomeration are the …