This is an empirical exploration of tax competition among Florida local governments. We estimate a spatial lag reaction function for property tax rate of Florida municipal governments in 2000 and 2004. The level of ``neighborliness'' is measured as spatial distance between geographical centers...

Goolsbee and Maydew (G&M) reported that lowering the weight on payroll in states’ corporate income tax apportionment formulae had the potential to raise manufacturing employment. Their analyses continue to be cited in academic articles and are still influential in the policy debate. I...

Matching grants inevitably provide lower level governments with an incentive to relabel expenditures so that they become eligible for a match. The author terms such behavior supplantation. Anecdotes and some systematic empirical evidence suggests that supplantation may be widespread in...