This paper analyzes the government's choice of three proportional tax bases (a consumption tax, a wage tax and a capital income tax) and its influence on the steady-state levels of capital accumulation and social welfare under fiscal federalism and the unitary system. We report two main...

This paper analyzes the governmentÂfs choice of three proportional tax bases (a consumption tax, a wage tax and a capital income tax) and its influence on the steady-state levels of capital accumulation and social welfare under fiscal federalism and the unitary system. We report two main...