There have been many tests of the convergence hypothesis yielding many different estimates of β (the speed of convergence). Narrative reviews of the convergence literature hint at possible reasons for the study-to-study variation in the value of β, but such reviews are selective and informal....

This paper models tax competition between two countries that are divided into regions. In the first stage of the game, the strategy variable for each country is the division of the provision of a continuum of public goods between the central and regional governments. In the second stage, the...