Fiscal Games in Overlapping Jurisdictions
Jay Hyoung-Keun Kwon*
* Swiss Institute of Artificial Intelligence, Chaltenbodenstrasse 26, 8834 Schindellegi, Schwyz, Switzerland
This paper examines how the dynamics of capital tax competition change with the introduction of overlapping jurisdiction with taxing authority in a standard tax competition model. Specifically, we develop a game-theoretic model involving two primary economies with asymmetry in per capita capital …