University of Warwick. Centre for the Study of Globalisation and Regionalisation
Abstract
This note shows that in the Sodrow-Miesowski-Wilson model, the Nash equilibrium in capital taxes depends on whether these taxes are unit (as assumed in the literature) or ad valorem (as in reality). In a symmetric version of the model with cobb-Douglas technology, public good provision is higher, and residents in both countries are better off, when countries compete in unit taxes
Is data on this page outdated, violates copyrights or anything else? Report the problem now and we will take corresponding actions after reviewing your request.