Borck, Rainald; Caliendo, Marco; Steiner, Viktor - In: FinanzArchiv: Public Finance Analysis 63 (2007) 2, pp. 264-277
We consider fiscal competition between jurisdictions. Capital taxes are used to finance a public input and two public goods: one that benefits mobile skilled workers and one that benefits immobile unskilled workers. We derive the jurisdictions' reaction functions for different spending...