Dhillon, Amrita; Wooders, Myrna H.; Zissimos, Ben - Vanderbilt University Department of Economics - 2006
In a classic model of tax competition, we show that the level of public good provision and taxation in a decentralized equilibrium can be efficient or inefficient with either too much, or too little public good provision. The key is whether there exists a unilateral incentive to deviate from the...
