Eichner, Thomas; Upmann, Thorsten - 2010
involuntary unemployment and by allowing for labour taxation as a second source of public funds. For a large class of production …In the present paper we extend the classical tax-competition framework of Zodrow and Mieszkowski (1986) by modelling … functions (including CES), it turns out that tax competition is characterized by underprovision of public goods, and by positive …