Gandelman, Nestor; Hernández-Murillo, Rubén - Federal Reserve Bank of St. Louis - 2002
base at home. We examine the conditions under which harmonization
to a common tax policy benefits each location and their …,
as in the case of size differences. If we define community 1 to be richer than community 2
when Φ
1
(x) ≤ Φ
2
(x) for all … x ∈ [y, y], there are two opposing effects. Taking the tax rate of
the rich community as given, the poor community by …