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An Auction Theoretical Approach to Fiscal Wars

Menezes, Flavio


I examine a situation where a firm has to choose to locate a new factory in one of several jurisdictions. The value of the factory may differ among jurisdictions and it depends on the private information held by each jurisdiction. Jurisdictions compete for the location of the new factory. This competition may take the form of expenditures already incurred on infrastructure, commitments to spend on infrastructure, tax incentives or even cash payments. The model combines two elements that are...[Show more]

CollectionsANU Research Publications
Date published: 2001
Type: Working/Technical Paper
Source: Social Choice and Welfare
DOI: 10.1007/s003550200173


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