Tiebout with Politics: Capital Tax Competition and Constitutional Choices
研究资本税竞争如何影响辖区形成，通过多数投票决定税收和公共品供给，发现竞争导致辖区扩大并可能提高所有成员的福利。
This paper examines how capital tax competition affects jurisdiction formation. We describe a non-cooperative locational model of public goods provision choices, where the levels of taxation and the local public good varieties provided within jurisdictions are selected by majority voting, and where equilibrium jurisdictions consist of consumers with similar tastes. We show that interjurisdictional tax competition results in an enlargement of jurisdictional boundaries, and, even in the absence of intrajurisdictional transfers, can raise welfare for all members of a jurisdiction.