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| Author: | Kessler, A. S. Lülfesmann, C. Myers, G. M. |
| Title: | Redistribution, fiscal competition, and the politics of economic integration |
| Journal: | Review of Economic Studies
2002 : OCT, VOL. 69:4(241), p. 899-923 |
| Index terms: | Competition Fiscal policy Economic integration |
| Language: | eng |
| Abstract: | The authors examine the consequences of the economic integration of factor markets in a model with two countries that redistribute income among their residents. The social benefits in each country are financed by a source based tax on capital which is democratically chosen by its inhabitants. If either capital or labour is internationally mobile, the countries engage in fiscal competition and the partial integration of capital or labour markets is essential to the countries' redistributive ability. |
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