We analyse how spillover effects may affect the choice of a federal tax rate in a federal country with vertical tax externalities. Our main result shows the conditions under which the federal tax rate with spillover effects is lower or higher than the federal tax rate without spillover effects. The effects of vertical tax externalities can be modified by the reaction of the federal government to the horizontal externality due to spillover effects.

Spillover Effects in a Federal Country with Vertical Tax Externalities / Lisa, Grazzini; Alessandro, Petretto. - In: PUBLIC FINANCE REVIEW. - ISSN 1091-1421. - STAMPA. - 45:(2017), pp. 701-720. [10.1177/1091142116671803]

Spillover Effects in a Federal Country with Vertical Tax Externalities

GRAZZINI, LISA;PETRETTO, ALESSANDRO
2017

Abstract

We analyse how spillover effects may affect the choice of a federal tax rate in a federal country with vertical tax externalities. Our main result shows the conditions under which the federal tax rate with spillover effects is lower or higher than the federal tax rate without spillover effects. The effects of vertical tax externalities can be modified by the reaction of the federal government to the horizontal externality due to spillover effects.
2017
45
701
720
Lisa, Grazzini; Alessandro, Petretto
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Utilizza questo identificatore per citare o creare un link a questa risorsa: https://hdl.handle.net/2158/1054024
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