Eichner, Thomas; Upmann, Thorsten - In: FinanzArchiv: Public Finance Analysis 70 (2014) 2, pp. 218-248
We extend the classical tax-competition framework of Zodrow and Mieszkowski (1986) by modeling involuntary unemployment and by allowing for labor taxation as a second source of public funds. Even though the framework of the Zodrow-Mieszkowski model is extended into two dimensions, we are able to...