By Elisabeth Gugl, Ph.D., and George R. Zodrow, Ph.D.
The authors construct a tax competition model in which local governments finance business public services with either a source-based tax on mobile capital, such as a property tax, or a tax on production, such as an origin-based value added tax, and then assess which of the two tax instruments is more efficient.
March 21, 2019, 1:43 p.m.