We extend the literature on local income tax competition by allowing for inter-jurisdictional spillovers and imperfect … the theoretical model, which reveals that free-riding rises unambiguously in the level of spillovers, whereas the welfare … losses from (1) and (3) depend nonlinearly on the levels of spillovers and rivalry. …

externalities in the form of inter-regional capital tax competition and technical externalities in the form of inter …-regional spillovers. The federal government aims to correct for these inefficiencies using a transfer system. If the regional governments … and technical externalities but free-ride on the transfer system. Efficiency can be achieved by introducing a second …

panel data and apply causal machine learning methods to identify the effects of decentralization on the statutory tax …

the fiscal externalities caused by their enforcement policy. We show that the tradeoff between these two opposing effects …

We develop a model of Tiebout sorting based on decentralized income taxation, which allows for spillovers and imperfect … rivalry in consumption of the publicly provided good. We identify three sources of welfare loss from decentralization …, the welfare loss from the inecient residential choice depends non-monotonically on spillovers and rivalry. The equilibrium …

In assessing the desirability for tax decentralization reforms, a dilemma between efficiency and redistribution emerges …, decentralization curbs incentives for excessive subnational spending and enhances fiscal discipline, but may also widen interregional … the optimal degree of fiscal decentralization. We find that tax decentralization can be optimal even under Rawlsian social …

We extend the literature on local income tax competition by allowing for inter-jurisdictional spillovers and imperfect … the theoretical model, which reveals that free-riding rises unambiguously in the level of spillovers, whereas the welfare … losses from (1) and (3) depend non-linearly on the levels of spillovers and rivalry …

We extend the literature on local income tax competition by allowing for inter-jurisdictional spillovers and imperfect … the theoretical model, which reveals that free-riding rises unambiguously in the level of spillovers, whereas the welfare … losses from (1) and (3) depend nonlinearly on the levels of spillovers and rivalry. …