The Politics of 1992: Fiscal Policy and European Integration
用一个两国模型分析欧洲内部市场带来的资本流动性增加如何影响各国的财政政策，发现更高的资本流动性既加剧税收竞争（降低税率），又通过改变选民偏好部分抵消这种竞争。
The internal market in Europe will greatly increase the international mobility. How will this affect fiscal policy in different countries? The authors consider taxation of capital in a two-country model where a democratically chosen government in each country chooses tax policy. Higher capital mobility changes the politico-economic equilibrium in two ways. On the one hand, it leads to more tax competition between the countries: this "economic effect" tends to lower tax rates in both countries. On the other hand, it alters voters' preferences and makes them elect a different government: this "political effect" offsets the increased tax competition, although not completely. Copyright 1992 by The Review of Economic Studies Limited.