Tax decentralization notwithstanding regional disparities
نویسندگان
چکیده
In assessing tax decentralization optimality, a dilemma between efficiency and redistribution emerges: enhances fiscal discipline, but may also widen interregional disparities by triggering competition over mobile bases. We present model that formalizes this trade-off, find can be optimal even under Rawlsian social preferences which only weight the welfare of poorest region in economy. revisit empirical relationship regional disparities. Our estimates uncover hump-shaped profile, compatible with our normative prescriptions when aversion for inequality is low.
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ژورنال
عنوان ژورنال: Journal of Urban Economics
سال: 2021
ISSN: ['0094-1190', '1095-9068']
DOI: https://doi.org/10.1016/j.jue.2021.103346