هزینه های رفاهی رقابت مالیاتی تا چه اندازه زیاد است؟

Competition among regional governments may lead to suboptimal levels of capital taxation, as governments ignore the external benefits of capital flight to other regions. However, there have been few attempts to quantify the magnitude of the resulting efficiency losses. This paper presents extensive calculations of the efficiency costs over a wide range of parameter scenarios and assumptions about government behavior, using various generalizations of Wildasin [Journal of Urban Economics 25 (1989) 193–213]. The efficiency costs tend to be fairly moderate under most (though not all) scenarios, and particularly when allowance is made for the possibility of Leviathan and non-competitive government behavior.