EXISTENCE OF NASH EQUILIBRIA IN FISCAL COMPETITION MODELS

Authors
LAUSSEL D LEBRETON M
Citation
D. Laussel et M. Lebreton, EXISTENCE OF NASH EQUILIBRIA IN FISCAL COMPETITION MODELS, Regional science and urban economics, 28(3), 1998, pp. 283-296
Citations number
12
Categorie Soggetti
Urban Studies",Economics,"Environmental Studies
Journal title
Regional science and urban economics → ACNP
ISSN journal
01660462
Volume
28
Issue
3
Year of publication
1998
Pages
283 - 296
Database
ISI
SICI code
0166-0462(1998)28:3<283:EONEIF>2.0.ZU;2-Q
Abstract
We characterize the set of Nash equilibria under some specific assumpt ions for a fiscal competition game as initiated by Wildasin (1988) (Jo urnal of Public Economics, 35, 129-240) where two jurisdictions compet e in tax rates. Equilibria are shown to be either unique or to involve a zero net rate of return on capital. (C) 1998 Elsevier Science B.V.