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Strategic tax competition and public good provision
1 : Département de sciences économiques Université de Montréal
(ScEco UdeM)
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Website
2 : Aix-Marseille School of Economics
* : Corresponding author
Aix Marseille Université
This paper examines the issue of income tax competition between two jurisdictions in the presence of a public good under various informational assumptions. If the in- formation on individuals' income is public, then introducing public good in an income tax competition model increases significantly the possibility of income redistribution by competing government. If the information on individual income is private, then the possibility for redistributions is more limited.
