{"id":31,"date":"2019-01-01T14:49:42","date_gmt":"2019-01-01T13:49:42","guid":{"rendered":"http:\/\/people.unil.ch\/mariusbrulhart\/?p=31"},"modified":"2023-02-01T14:48:47","modified_gmt":"2023-02-01T13:48:47","slug":"does-tax-competition-tame-the-leviathan","status":"publish","type":"post","link":"https:\/\/people.unil.ch\/mariusbrulhart\/2019\/01\/does-tax-competition-tame-the-leviathan\/","title":{"rendered":"Does Tax Competition Tame the Leviathan ?"},"content":{"rendered":"\n<p>with Mario Jametti, <em>Journal of Public Economics,\u00a0<\/em>177,\u00a02019. <a href=\"https:\/\/people.unil.ch\/mariusbrulhart\/files\/2023\/02\/leviathan.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">See publication<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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.<\/p>\n","protected":false},"author":1001107,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-31","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-peer-reviewed"},"_links":{"self":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts\/31","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/users\/1001107"}],"replies":[{"embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/comments?post=31"}],"version-history":[{"count":0,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts\/31\/revisions"}],"wp:attachment":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/media?parent=31"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/categories?post=31"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/tags?post=31"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}