IDEAS home Printed from https://ideas.repec.org/a/bla/jregsc/v42y2002i4p753-771.html
   My bibliography  Save this article

Local Fiscal Strategy to Retain Heterogeneous Firms

Author

Listed:
  • Maureen Kilkenny
  • Tigran Melkonyan

Abstract

This paper is about the strategy of retaining unobservably heterogeneous firms attracted by unobservably valued outside alternatives. We prove that differentiating taxation and public good fiscal packages within one’s own locale dominates offering the same packages to all firms. We rationalize the full range of observed practice by considering more than one type of firm, more than one type of fiscal instrument, and all kinds of utility in alternative locations, under asymmetric information. Mobile agents can earn rents under some conditions, and immobile agents earn rents under others. Ways to minimize budgetary exposure in tax wars and effects on the composition of local economies are discussed.

Suggested Citation

  • Maureen Kilkenny & Tigran Melkonyan, 2002. "Local Fiscal Strategy to Retain Heterogeneous Firms," Journal of Regional Science, Wiley Blackwell, vol. 42(4), pages 753-771.
    • Handle: RePEc:bla:jregsc:v:42:y:2002:i:4:p:753-771
    DOI: 10.1111/1467-9787.00280
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9787.00280
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9787.00280?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:42:y:2002:i:4:p:753-771. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.