Arbeitspapier

Dynamic tax competition and public-sector modernisation

This paper addresses the question whether increased mobility of capital enhances public-sector modernisation. Public-sector modernisation is modelled as the accumulation of knowledge (or another accumulated production factor) that serves as an input in the government's production of a consumption good. The public-sector provides a direct transfer to households. The tax competition model in the background is a dynamic model in which capital flight induced by taxation is a process that takes time. The speed with which firms can relocate capital to other jurisdictions is taken as a measure of the degree of capital mobility. The main result of the paper is a contradiction of the idea that the competitive pressure caused by increased capital mobility enhances public sector modernisation.

Sprache
Englisch

Erschienen in
Series: Thünen-Series of Applied Economic Theory - Working Paper ; No. 56

Klassifikation
Wirtschaft
Structure, Scope, and Performance of Government
Intergovernmental Relations; Federalism; Secession
National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
Economic Growth and Aggregate Productivity: General
Thema
public-sector modernisation
dynamic tax competition
imperfect capital mobility

Ereignis
Geistige Schöpfung
(wer)
Becker, Daniel Thomas
Ereignis
Veröffentlichung
(wer)
Universität Rostock, Institut für Volkswirtschaftslehre
(wo)
Rostock
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Becker, Daniel Thomas
  • Universität Rostock, Institut für Volkswirtschaftslehre

Entstanden

  • 2008

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