This paper addresses the issues of whether and how economic integration can affect the ability of the central governments to raise tax revenues and lead to a greater decentralisation of the public sector. To this purpose, a country-specific measure of tax erosion is derived. That is used as a determinant of the degree of fiscal federalism. We find that an increase of economic integration causes a decline of the implicit tax rates on mobile capital and the process of tax erosion positively contributes to the growth of public sector decentralisation

GASTALDI F, LIBERATI P, & SCIALA' A (2013). Economic integration, tax erosion, and decentralization: an empirical analysis. MODERN ECONOMY, 4(10A), 14-26.

Economic integration, tax erosion, and decentralization: an empirical analysis

LIBERATI, PAOLO;SCIALA', Antonio
2013

Abstract

This paper addresses the issues of whether and how economic integration can affect the ability of the central governments to raise tax revenues and lead to a greater decentralisation of the public sector. To this purpose, a country-specific measure of tax erosion is derived. That is used as a determinant of the degree of fiscal federalism. We find that an increase of economic integration causes a decline of the implicit tax rates on mobile capital and the process of tax erosion positively contributes to the growth of public sector decentralisation
GASTALDI F, LIBERATI P, & SCIALA' A (2013). Economic integration, tax erosion, and decentralization: an empirical analysis. MODERN ECONOMY, 4(10A), 14-26.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11590/138500
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