Tax competition;
Optimal taxation;
Government preferences;
Fiscal federalism;
Direct democracy;
DIRECT DEMOCRACY;
PROPERTY TAXATION;
EXTERNALITIES;
TIEBOUT;
POLICY;
DECENTRALIZATION;
PARTICIPATION;
POLITICIANS;
ECONOMY;
SIZE;
D O I:
10.1016/j.jpubeco.2019.06.005
中图分类号:
F [经济];
学科分类号:
02 ;
摘要:
We study the impact of tax competition on equilibrium taxes and welfare, focusing on the jurisdictional fragmentation of federations. In a representative-agent model of fiscal federalism, fragmentation among jurisdictions with benevolent tax-setting authorities unambiguously reduces welfare. If, however, tax-setting authorities pursue revenue maximization, fragmentation, by pushing down equilibrium tax rates, may under certain conditions increase citizen welfare. We exploit the highly decentralized and heterogeneous Swiss fiscal system as a laboratory for the estimation of these effects. While for purely direct democratic jurisdictions (which we associate with relatively benevolent tax setting) we find that tax rates increase in fragmentation, fragmentation has a moderating effect on the tax rates of jurisdictions with some degree of delegated government. Our results thereby support the view that tax competition can be second-best welfare improving by constraining the scope for public-sector revenue maximization. (C) 2019 Elsevier B.V. All rights reserved.
机构:
Jilin Univ, Northeast Asian Res Ctr, Changchun 130012, Peoples R China
Jilin Univ, Northeast Asian Studies Coll, Changchun 130012, Peoples R ChinaJilin Univ, Northeast Asian Res Ctr, Changchun 130012, Peoples R China
Zhou, Kuo
Qu, Zhi
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机构:
Jilin Univ, Sch Econ, 2699 Qianjin St, Changchun 130012, Jilin, Peoples R ChinaJilin Univ, Northeast Asian Res Ctr, Changchun 130012, Peoples R China
Qu, Zhi
Wei, Zhixuan
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机构:Jilin Univ, Northeast Asian Res Ctr, Changchun 130012, Peoples R China
Wei, Zhixuan
Zhao, Jiyang
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机构:
Cent Univ Finance & Econ, Sch Publ Finance & Taxat, Beijing 100081, Peoples R China
Harbin Inst Technol, Sch Management, Harbin 150000, Heilongjiang, Peoples R ChinaJilin Univ, Northeast Asian Res Ctr, Changchun 130012, Peoples R China
机构:
Univ Oxford, Said Business Sch, Ctr Business Taxat, Oxford OX1 HP, EnglandUniv Oxford, Said Business Sch, Ctr Business Taxat, Oxford OX1 HP, England
Becker, Johannes
Fuest, Clemens
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机构:
Univ Oxford, Said Business Sch, Ctr Business Taxat, Oxford OX1 HP, EnglandUniv Oxford, Said Business Sch, Ctr Business Taxat, Oxford OX1 HP, England
机构:
Nagoya Univ, Grad Sch Econ, Chikusa Ku, Furo Cho, Nagoya, Aichi 4648601, JapanNagoya Univ, Grad Sch Econ, Chikusa Ku, Furo Cho, Nagoya, Aichi 4648601, Japan
Kikuchi, Yuya
Tamai, Toshiki
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机构:
Nagoya Univ, Grad Sch Econ, Chikusa Ku, Furo Cho, Nagoya, Aichi 4648601, JapanNagoya Univ, Grad Sch Econ, Chikusa Ku, Furo Cho, Nagoya, Aichi 4648601, Japan