Esteller-Moré, Alejandro; Rizzo, Leonzio - Institut d'Economia de Barcelona (IEB), Facultat … - 2009
Besley and Rosen (1998) were the first authors to empirically estimate the presence of vertical tax externalities. They tested it on gasoline and tobacco unitary taxes. However, they did not take into account the difference in cost of living across states: high cost areas pay less in real terms...