Public input provision, tax base mobility, and external ownership Mutsumi Matsumoto
By: Matsumoto, Mutsumi.
Contributor(s): Lofton, Michelle L.
Material type: ArticlePublisher: 2021Subject(s): INGRESOS PUBLICOS | COMPETENCIA FISCAL NOCIVA | BASE IMPONIBLE | IMPUESTOS | ESTADOS UNIDOS | MODELOS ECONOMETRICOS In: Public Finance Review v. 49, n. 5, September 2021, p. 754-774Summary: This article investigates the distortionary impacts of tax base mobility and external ownership on public input provision. Regional governments compete for mobile tax bases (e.g., business capital). The impact of regional public policy partially accrues to non-residents because immobile factors (e.g., business land) are subject to external ownership. This article derives an optimal rule for regional public input provision that illustrates how these two distortionary impacts depend on the nature of production functions. The impact of external ownership is particularly complex. To explore this impact in detail, the case of production functions with constant elasticity of substitution is examined. Public inputs with different productivity impacts yield fairly different implications of external ownership for inefficient public input provision.Item type | Current location | Home library | Call number | Status | Date due | Barcode |
---|---|---|---|---|---|---|
Artículos | IEF | IEF | OP 581/2021/5-2 (Browse shelf) | Available | OP 581/2021/5-2 |
Browsing IEF Shelves Close shelf browser
No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
OP 581/2021/4-1 How does a reduction in mandated medicaid spending affect local fiscal behaviors? | OP 581/2021/5 Public Finance Review | OP 581/2021/5-1 Balanced budget requirements revisited | OP 581/2021/5-2 Public input provision, tax base mobility, and external ownership | OP 581/2022/1 Public Finance Review | OP 581/2022/1-1 The VAT at 100 | OP 581/2022/1-2 Fiscal decentralization and the composition of local government expenditure |
Resumen.
Bibliografía.
This article investigates the distortionary impacts of tax base mobility and external ownership on public input provision. Regional governments compete for mobile tax bases (e.g., business capital). The impact of regional public policy partially accrues to non-residents because immobile factors (e.g., business land) are subject to external ownership. This article derives an optimal rule for regional public input provision that illustrates how these two distortionary impacts depend on the nature of production functions. The impact of external ownership is particularly complex. To explore this impact in detail, the case of production functions with constant elasticity of substitution is examined. Public inputs with different productivity impacts yield fairly different implications of external ownership for inefficient public input provision.
There are no comments for this item.