skip to main content

Our response to the Covid-19 outbreak.

Research Library

Center for Public Finance



Tax competition and the efficiency of "benefit-related" business taxes

George Zodrow

Tax competition and the efficiency of "benefit-related" business taxes.

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.