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Fiscal Competition and the Composition of Public Spending: Theory and Evidence

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dc.creator Borck, Rainald
dc.creator Caliendo, Marco
dc.creator Steiner, Viktor
dc.date 2005
dc.date.accessioned 2013-10-16T06:59:42Z
dc.date.available 2013-10-16T06:59:42Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18379
dc.identifier ppn:504318365
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18379
dc.description In this paper, we consider fiscal competition between jurisdictions. Capital taxes are used to finance a public input and two public goods, one which benefits mobile skilled workers and one which benefits immobile unskilled workers. We derive the jurisdictions? reaction functions for different spending categories. We then estimate these reaction functions using data from German communities. Thereby we explicitly allow for a spatially lagged dependent variable and a possible spatial error dependence by applying a generalized spatial tow-stage least squares (GS2SLS) procedure. The results show, that there is significant interaction between spending of neighbouring counties in Germany.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 528
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject J61
dc.subject J24
dc.subject H77
dc.subject ddc:330
dc.subject Tax competition
dc.subject capital skill complementarity
dc.subject public spending
dc.subject spatial econometrics
dc.subject Steuerwettbewerb
dc.subject Öffentliche Ausgaben
dc.subject Kommunale Finanzpolitik
dc.subject Qualifikation
dc.subject Arbeitsmobilität
dc.subject Raumwirtschaftstheorie
dc.subject Ökonometrisches Modell
dc.subject Theorie
dc.title Fiscal Competition and the Composition of Public Spending: Theory and Evidence
dc.type doc-type:workingPaper


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