Does tax competition soften regional budget constraint?

Marie Laure Breuillé; Thierry Madiès; Emmanuelle Taugourdeau

doi:10.1016/j.econlet.2005.08.010

Does tax competition soften regional budget constraint?

Marie Laure Breuillé
, Thierry Madiès
, Emmanuelle Taugourdeau

Research output: Contribution to journal › Article › peer-review

Abstract

This paper analyses the impact of both horizontal and vertical tax competition on central government transfers towards regions, as well as on the softness of the regional budget constraint. We show that tax interactions have no impact on the optimal central government grant whereas they harden the regional budget constraint when the regional debt is not too heavy.

Original language	English
Pages (from-to)	230-236
Number of pages	7
Journal	Economics Letters
Volume	90
Issue number	2
DOIs	https://doi.org/10.1016/j.econlet.2005.08.010
Publication status	Published - 1 Jan 2006
Externally published	Yes

Keywords

Fiscal federalism
Soft budget constraint
Tax competition

Access to Document

10.1016/j.econlet.2005.08.010

Cite this

@article{ad7ca8ef9ce046df8a56deb5577a5fe8,

title = "Does tax competition soften regional budget constraint?",

abstract = "This paper analyses the impact of both horizontal and vertical tax competition on central government transfers towards regions, as well as on the softness of the regional budget constraint. We show that tax interactions have no impact on the optimal central government grant whereas they harden the regional budget constraint when the regional debt is not too heavy.",

keywords = "Fiscal federalism, Soft budget constraint, Tax competition",

author = "Breuill{\'e}, \{Marie Laure\} and Thierry Madi{\`e}s and Emmanuelle Taugourdeau",

year = "2006",

month = jan,

day = "1",

doi = "10.1016/j.econlet.2005.08.010",

language = "English",

volume = "90",

pages = "230--236",

journal = "Economics Letters",