Néstor Gandelman; Rubén Hernández-Murillo - In: Topics in Economic Analysis & Policy 4 (2004) 1, pp. 1219-1219
We examine a two-jurisdiction tax competition environment where local governments can only imperfectly monitor where agents pay taxes and risk-averse individuals may choose to cross borders to pay lower taxes in a neighboring location.In a game between local authorities, we find that, when...