Arbeitspapier
Interjurisdictional Spillovers, Decentralized Policymaking and the Elasticity of Capital Supply
This paper points to the important role which the elasticity of aggregate capital supply with respect to the net rate of return to capital plays for the efficiency of policymaking in a decentralized economy with mobile capital and spillovers among jurisdictions. In accordance with previous studies, we show that under the assumption of a fixed capital supply (zero capital supply elasticity) the decentralized policy choice is optimal. If the capital supply elasticity is strictly positive, however, capital tax rates are inefficiently low in the decentralized equilibrium.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 3214
- Classification
-
Wirtschaft
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Intergovernmental Relations; Federalism; Secession
Environmental Economics: Government Policy
- Subject
-
decentralized policymaking
spillovers
capital supply elasticity
Kapitalertragsteuer
Finanzföderalismus
Kapitalmobilität
Preiselastizität
Spillover-Effekt
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Eichner, Thomas
Runkel, Marco
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2010
- Handle
- Last update
-
09.03.2025, 5:24 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Eichner, Thomas
- Runkel, Marco
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2010
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