Zur politischen Ökonomie von Defiziten und Kapitalsteuerwettbewerb

Arbeitspapier

We connect the theories of strategic debt and tax competition in a model and explore whether capital mobility coupled with a strategic debt effectively tames Leviathan. Our proposition is that in the case of a small open economy international tax competi-tion for mobile capital opens the way to a previously unexplored sort of strategic deficit. The incumbent conservative government builds a reelection strategy on the downwards pressure on mobile factor tax rates caused by tax competition the liberal successor will be exposed to. As a result it can raise its chances to be reelected by tying the successor's hands on expenditure issues.

Object Details

• Language: Deutsch

References and Relationships

• Bibliographic citation: Series: Ordnungspolitische Diskurse ; No. 2009-13

Classification and Topics

• Classification: Wirtschaft
• Subject: Structure and Scope of Government ; State and Local Budget and Expenditures ; Interjurisdictional Differentials and Their Effects

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pitsoulis, Athanassios ; Siebel, Jens Peter
• Event: Veröffentlichung
• (who): OrdnungsPolitisches Portal (OPO)
• (where): s.l.
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/55405
• Last update: 10.03.2025, 11:44 AM CET